NASCUS Visits Capitol Hill to Discuss Supplemental Capital for Credit Unions, Express State Regulators’ Support for Capital Access for Small Business and Jobs Act
December 23 NASCUS met with the legislative staff of Congressmen Ed Perlmutter (D-Colo.) and John Carney (D-Del.) last week to discuss supplemental capital for credit unions and express state regulators’ support for the Capital Access for Small Business and Jobs Act (H.R. 719). NASCUS is joined by NCUA, as well as CUNA and NAFCU in supporting this important legislation.
Under the current system, regulatory capital for most credit unions is so narrowly defined that otherwise-healthy credit unions can experience significant declines in net worth simply through accepting deposits from their existing members. Allowing credit unions to accept uninsured non-share accounts as regulatory capital would create a capital buffer and protect the shared insurance fund. Virtually every developed credit union system in the world provides access to supplemental capital for their credit unions and it is time for Congress to provide this essential safety and soundness tool to U.S. credit unions. H.R. 719 is a commonsense bipartisan solution that enjoys support from both sides of the aisle and from all corners of the country. NASCUS will continue to advocate for capital reform for credit unions, and is optimistic that progress can be made on this vital legislation in 2014.