Committee OKs CHOICE; ‘valuable provisions for state system’
Sept. 13, 2016 -- Legislation that would make sweeping changes to the federal financial institution regulatory scheme – including that affecting the state credit union system – was adopted today, 30-26, by the House Financial Services Committee. The bill now heads to the full House for consideration.
Developed by Committee Chairman Jeb Hensarling (R-Texas), the bill (HR 5983) would change the size of the NCUA Board (from three to five members, serving five year terms), extend the exam period for some credit unions to 18 months, and increase the transparency by NCUA for the overhead transfer rate (OTR).
NASCUS President and CEO Lucy Ito, in a statement, said that the legislation provides valuable provisions for the state credit union system – including those mentioned above – which NASCUS has long advocated. For example, she pointed out that that NASCUS has recommended increasing the size of the NCUA Board for the past 20 years. But she indicated there was more room for Congress to act.
“While increasing the board membership would enhance the board’s deliberative process, expand its collective expertise, and improve the efficient administration of agency business, NASCUS also urges lawmakers to consider further amending the legislation going forward to designate one of the seats on the board for a candidate who has served as a state credit union supervisor,” the NASCUS leader stated.
Ito noted that designating a seat on the NCUA Board, by law, for someone with state regulatory experience would reflect the basic value of interaction between the board and state regulators, and the importance of the dual-chartering system to the health and safety of the credit union system. “Ultimately, consumers benefit when the state voice is heard – and when federal and state regulators work cooperatively,” she stated.
The 513-page bill passed by the committee today faces an uncertain future, particularly with the election coming up, and this Congress in its final few months.