Trades Urge Matz to Intensify Efforts on Secondary Capital
The leaders of CUNA and NAFCU yesterday wrote NCUA Chairman Debbie Matz requesting her "leadership and assistance'' in moving capital reform through Congress.
CUNA President Bill Cheney and NAFCU President Fred Becker wrote that the issue is one of "ever-increasing importance'' and requested a meeting with Matz to discuss the issue further.
Last year, Matz wrote House Financial Services Committee Chairman Barney Frank (D-Mass.) that modifying the Federal Credit Union Act to expand its definition of net worth to allow uninsured capital instruments would let some credit unions "better manage net worth levels under varying economic conditions.''
Congress is likely to take up the issue of capital reform next year, in the wake of requirements approved by the Basel Committee on Banking Supervision to increase the capital requirements of banks that operate internationally. American credit unions aren't subject to international capital requirements, but the government's reaction to changes in the rules could include rule changes allowing supplemental capital.