WASHINGTON — Saying that there needs to be a balance between providing strong oversight and not stifling innovation, NCUA Board Member Gigi Hyland today endorsed a proposal that would require regulatory agencies to eliminate a regulation every time it issues a new one.
Hyland said that idea, which is contained in a bill sponsored by Sen. Mark Warner (D-Va.), would result in a pay-as-you-go regulatory system that would “discourage agencies from continually churning out new rules.”
She also called on the NCUA to update its regulatory review process. She would like to see the agency change its definition of small credit unions. Currently, credit unions with assets of less than $10 million are considered small; Hyland suggests changing that threshold to $50 million.
Hyland also reiterated her support for capital reform, including the ability to raise supplemental capital that counts towards the Prompt Corrective Action “net worth,” requirement. She called for a more robust risk-based capital system, saying the current system is too rigid and takes a “one-size-fits-all” approach.
She also urged attendees to continue to find ways to increase their collaborative efforts. Whether this is done formally or informally, “collaboration, in all its forms, is a necessary part of the future of credit unions. We all need to adapt to that reality sooner rather than later,” Hyland concluded.
