WASHINGTON—Reps. Peter King (R-NY) and Brad Sherman (D-CA), both of the House Financial Services Committee, have reintroduced legislation that would give credit unions access to supplemental capital that preserves mutuality – an element of comprehensive capital reform for credit unions.
“The ‘Capital Access for Small Businesses and Jobs Act’ would further credit unions’ ability to operate effectively within the financial services marketplace, now and into 2019, when the NCUA’s new risk-based capital requirements are set to take effect,” said Brad Thaler, NAFCU’s vice president of legislative affairs. “We appreciate the support and leadership shown by Reps. King and Sherman in seeking to help ensure credit unions’ ability to grow and meet members’ changing needs.”
Other cosponsors for the bill, HR 1244, include Reps. Eleanor Holmes Norton (D-DC), Bill Posey (R-FL), Chellie Pingree (D-ME), Tim Ryan (D-OH), Suzanne Bonamici (D-OR), Dave Loebsack (D-IA), Derek Kilmer (D-WA) and Walter Jones (R-NC).
NAFCU’s 2017 legislative priorities include achieving a fair capital system for all federally insured credit unions that provides for true risk-based capital and access to supplemental capital. NAFCU opposed the NCUA’s risk-based capital rule, urging that it be withdrawn, and is now working on ways the rule could be made better for insured credit unions.
NAFCU said it is also reviewing the NCUA’s advance notice of proposed rulemaking, released by the agency board in January, on alternative forms of capital federally insured credit unions could use to meet capital standards required by statute and regulation.
NCUA is taking comments on the ANPR until May 9.