NASCUS Promotes Supplemental Capital for Credit Unions at Washington Credit Union League Event
February 16, 2010 At the invitation of the Washington Credit Union League, NASCUS President and CEO Mary Martha Fortney joined Washington state regulator Linda Jekel for a panel on supplemental capital for credit unions at the league's Evolution Summit event.
Fortney discussed NASCUS' position on supplemental capital and the need to reform credit union capital standards. She identified the regulatory uses of supplemental capital and NASCUS continued work to achieve the necessary legislative and regulatory changes to make supplemental capital a reality for credit unions. Director of Credit Unions state Linda Jekel reviewed how supplemental capital would benefit credit unions, and the regulatory parameters for use of this tool.
"For years, NASCUS has supported supplemental capital for credit unions," said Fortney at the event. "State regulators believe that providing capital options for credit unions is a matter of safety and soundness and an important cushion for the insurance fund. NASCUS continues to advocate for the legislative and regulatory changes to make supplemental capital a tool for credit unions."
Fortney also explained the characteristics necessary for supplemental capital for credit unions including preserving the tax exempt status and the mutuality of credit unions, proper disclosures and appropriate regulatory parameters. A group of state regulators is working on a task force with NCUA to study supplemental capital for credit unions.
Paul Hazen, president of the National Cooperative Business Association shared how supplemental capital is utilized by other cooperatives and how it works for those groups. Credit union attorney Chris Pippett also contributed to the panel.
NASCUS appreciates the opportunity to discuss this important issue with Washington credit unions.