January 18, 2011
NASCUS Expresses Support for Matz's Congressional Request for Capital Reforms
Arlington, Va. In response to NCUA Chairman Debbie Matz's Jan. 14 letters to Congress, NASCUS expresses its support for the Congressional efforts to address credit union capital reform, including access to supplemental capital for credit unions.
In support of Matz's letters regarding credit union capital reform, NASCUS President and CEO Mary Martha Fortney made the following statements. "NASCUS and state regulators have long supported supplemental capital and capital reform for credit unions. We are pleased that Chairman Matz continues to express her support for these critical reforms." She added: "Credit unions can only rely on retained earnings for capital growth, an archaic structure that does not allow credit unions to raise capital in times of need. For NASCUS and state regulators (many of whom are familiar with supplemental capital through bank regulatory responsibilities) achieving capital reform has long been a matter of safety and soundness. Increased capital and investor discipline can provide critical buffers during economic downturns. We believe credit unions can manage the complexities of supplemental capital, and that NCUA and state regulators can manage its regulation. NASCUS continues to work with NCUA, Congress and the credit union system to achieve this critical capital reform for credit unions."
Kate Hartig, VP, Public Relations and Legislative Affairs, (703) 528-0669 or email@example.com