NCUA Ready to Revise MBL Reg Should Cap Rise
NCUA Chairman Debbie Matz reiterated how the agency would be ready to revise the member business lending regulation should the 12.25% of asset cap go to 27.5% or higher.
The assurance came last week to mark the end of National Small Business Week.
"If legislative changes increase or eliminate the current aggregate MBL cap," wrote Matz in a Feb. 24 letter to Treasury Secretary Timothy Geithner, "NCUA would promptly revise our regulation to ensure that additional capacity in the credit union system would not result in unintended safety and soundness concerns."
Last week, Matz said proposals to raise the statutory cap on member business lending, which currently limits credit unions' business lending to just 12.25% of their assets, are gradually advancing on Capitol Hill, Matz noted. Sometime this year, Congress may consider raising that level to 27.5% or higher, she added.
"Credit unions historically have played an important role in providing small business lending to their members, and I am pleased that the industry maintained this activity throughout the recent economic downturn," Matz said.