Trades Praise Corporate Credit Rules but Pledge to Examine Them Thoroughly
CUNA, NAFCU and NASCUS said there were few surprises in the proposed corporate credit union rules that the NCUA Board sent out for 90 days of public comment today, but pledged to examine them carefully and submit comments to the agency.
"A number of the safety and soundness provisions of the proposed rule on corporate credit unions issued appear to be broadly consistent with many of the recommendations made by the CUNA/NAFCU Joint Task Force on corporate regulation. However, we do intend to use the entire comment period to look carefully at the complete proposal and develop a comprehensive view. This is the most far-reaching rule that that agency will produce for some time in this area; it remains to be seen if this proposed model is one that will be supported by natural person credit unions and allow a sufficient number of corporates to continue to serve them," CUNA President/CEO Dan Mica said in a statement.
NAFCU President/CEO Fred Becker said "there weren't a lot of surprises" and the proposals were in line with the agency's public comments.e added that he hopes corporate credit unions to scrutinize the rules carefully "to determine if they can construct a business model that fits within the rules."
NASCUS President/CEO Mary Martha Fortney said she was pleased that the NCUA worked closely with state regulators when coming up with the proposal. She said her organization hopes the final rule will address "capital levels, concentration issues, systemic risk and supervisory concerns while preserving a meaningful opportunity for corporate credit unions to continue as ongoing concerns with support from their members." She added that "restoring distinctions between state and federal corporate credit unions is important to the future stability of the system."