September 25, 2014 – For immediate release
NASCUS Submits Statement for the Record to Senate Committee on Banking, Housing and Urban Affairs
The National Association of State Credit Union Supervisors (NASCUS) submitted a statement for the record of the Sept. 16 Senate Banking Committee hearing regarding the state of small depository institutions.
Among other issues, the hearing dealt with the increased consolidation within the credit union movement, which is being felt especially by moderately-sized credit unions. NASCUS noted that “Although some of this consolidation is a natural consequence of the demand for increasingly complex and technologically streamlined financial services, regulatory burden is also having a real impact.”
In its statement, NASCUS urged the committee to take action on several bills, including the Capital Access for Small Businesses and Jobs Act (H.R. 719) the Privacy Notice Modernization Act (S. 635) and the Credit Union Share Insurance Fund Parity Act (S. 2698/S. 2699). With regard to H.R. 719, NASCUS said, “A supplemental capital program can provide increased systemic stability, additional balance sheet management tools and an extra buffer to mutualized losses.” All three pieces of legislation, if passed, would reduce regulatory burden.
Reducing regulatory burden has remained a goal of NASCUS since the organization was founded in 1965 and, said NASCUS President and CEO Mary Martha Fortney, “The reduction in regulatory burden that would come from the passage of these important pieces of legislation would be welcome to the credit union industry, enabling them to more fully serve credit union members and potential members.”
NASCUS encouraged the committee to remain actively engaged in regulatory oversight, noting that Congress has a role to play in ensuring that federal regulators remain committed to right-sizing regulations. They pointed out Congress’ support of the EGRPRA review process, which can be a valuable tool to minimize outdated, unnecessary or unduly burdensome requirements, as well as the oversight by several members of the committee of the risk-based capital deliberations.
“We look forward to continued dialogue and progress in the continued effort to eliminate unnecessary regulatory burdens,” NASCUS wrote.
Elizabeth Kirkland, Director of Communications and Marketing, firstname.lastname@example.org or (703) 528-5974