MBL Reg Revision Would Be Prompt
If the member business lending 12.25% asset cap go to 27.5% or higher, NCUA Chairman Debbie Matz reiterated how the agency would be ready to revise the member business lending regulation.
The assurance came to mark the recent end of National Small Business Week. "An enhanced ability for credit unions to lend for business purposes?if properly regulated, with appropriate safeguards?can become an even greater spur to job creation in the future," said Matz.
On Feb. 24, Matz wrote a letter to Treasury Secretary Timothy Geithner outlining the approach the NCUA would take in its rulemaking and oversight if Congress were to decide to raise the MBL cap.
"If legislative changes increase or eliminate the current aggregate MBL cap," wrote Matz, "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."