NASCUS Applauds Introduction of Supplemental Capital Bill
Feb. 9, 2012 - Rep. Peter King (R-NY) introduced the Capital Access for Small Businesses and Jobs Act, H.R. 3993, legislation that will allow credit unions to access supplemental capital, a reform long supported by NASCUS.
NASCUS and state regulators have steadfastly supported supplemental capital for qualifying credit unions to enhance safety and soundness. Supplemental capital would also provide options for credit unions to meet necessary capital levels in a manner consistent with advanced financial systems worldwide. In addition to working with policymakers and by testifying in Congress to keep this matter at the forefront, NASCUS has worked diligently over many years with the credit union system to build consensus on this issue. The majority of state credit union regulators supervise other depository institutions and have long recognized that credit unions are disadvantaged by an archaic capital structure limited to retained earnings.
"NASCUS applauds the introduction of this bill and enthusiastically supports the ability of state and federal regulators to be provided with this regulatory parity enjoyed by other federal regulators," said NASCUS President and CEO Mary Martha Fortney.
"For NASCUS and state regulators, access to supplemental capital for credit unions has always been a matter of safety and soundness. This critical reform gives credit unions the necessary capital flexibility to respond to economic conditions, both in good times and bad. For years, credit unions have been constrained by a capital system that is not complimentary to the modern regulatory environment credit unions operate in today."
Fortney added, "NASCUS is pleased Congress has recognized the importance of this reform and how this enhancement can bolster credit unions' recognized role in economic recovery. We recognize that there is more work ahead to make supplemental capital a reality, but the introduction of this legislation is an important milestone in our efforts to achieve this reform. NASCUS Chairman Orla Beth Peck (UT) and Credit Union Advisory Council Chairman Cathie Tierney, (Community First CU, WI), join me in expressing appreciation to all who have gotten us to where we are today. We look forward to continuing our efforts."
NASCUS has partnered closely with the Coalition for Credit Union Access on this issue and also continues its work, as it has for several years, with the National Credit Union Administration (NCUA) on the regulatory considerations for supplemental capital access for credit unions. NASCUS will provide a summary of the bill here on its website shortly.