WASHINGTON--Congressmen Paul Kanjorski (D-Pa.) and Ed Royce (R-Calif.) introduced the Credit Union Regulatory Improvements Act at deadline last week.
H.R. 1537 contains provisions to establish a risk-based capital framework for credit unions and lift the member business lending cap to 20% as it did last year. "Based on the recent recommendations of the federal credit union regulator, these enhanced risk-based and prompt corrective action standards will ensure the efficient allocation of capital, while protecting taxpayers," Royce stated.
However, in response to NCUA's decision to halt non-multiple common bond credit unions from adopting underserved areas, the legislation would also permit all federally chartered credit unions to adopt underserved areas. "The new bill would allow all [federal] credit unions to operate in such places enabling them to assist in community revitalization and economic renewal efforts," Kanjorski commented.
It would also increase credit union to mutual savings bank conversion voter participation requirements from none under current law to a 30% minimum. Last year's CURIA included a 20% minimum voter participation. CUNA and NAFCU issued a joint statement commending Royce and Kanjorski for introducing the bill.