Multi-pronged strategy aims to
protect business, mortgage lending
Your comments are WORKING to improve the outcome!
75% of U.S. Reps. and the former Senate Banking Committee Chair have joined our effort to improve NCUA's proposal, which would drain $200 million in active capital from Wisconsin credit unions, for a total drain on the system of $7.3 billion.
Because the plan is expected to cut credit unions' required capital buffers by billions of dollars – forcing credit unions to react in ways that may harm their earnings as well as member service – it has been called a "ground zero" issue. As such, CUNA, state leagues and credit unions are pursuing a multi-pronged strategy to mitigate the plan’s potentially harmful effects.
The proposal will affect all federally insured credit unions—including state chartered credit unions—with over $50 million in assets. It would include risk-weighting of certain assets (e.g., real estate, member business loans and investments in CUSOs) and allow NCUA to raise the risk-based capital requirement of an individual credit union above the normal threshold levels based on subjective factors.
Our battlefront includes:
"It would be imprudent not to explore every avenue for engagement on this issue," said League VP of Government Affairs Tom Liebe. "Together, credit unions, CUNA and Leagues are leveraging relationships with NCUA technical staff, using the rule comment process and encouraging Congressional oversight to give us the best chance at affecting change."
League President & CEO Brett Thompson, who
chaired a meeting recently of the CUNA
Examination and Supervision Subcommittee and NCUA that posed the growing litany of credit union concerns on both
legal and economic grounds, said representatives from the agency
are considering the issues that have been brought to
"The influence that we can have now–with the help of our elected officials—is absolutely critical. We don’t want to find ourselves years down the pike wishing we had done more to effect something that could have a detrimental impact on members tomorrow," Thompson emphasized.
|Multi-pronged strategy aims to protect business, mortgage lending|
©2005 Wisconsin Credit Union League. All rights reserved.
Site powered by iMIS.