MBL Hearing: Senators Remain Skeptical
WASHINGTON — NCUA Chairman Debbie Matz told a panel of skeptical senators that raising the cap on member business loans would actually improve credit unions’ risk environment while creating more jobs.
She said at a June 16 hearing of the Senate Banking Committee that legislation introduced by Sen. Mark Udall (D-Colo.) to raise the cap from 12.25% to as much as 27.5% of assets would "give credit unions an opportunity to prudently grow their portfolios."
At the hearing, which took place a week after banks and credit unions were comrades in arms on delaying new interchange rules, they resumed their positions as antagonists on the question of whether credit unions should be allowed to make more business loans.
"Raising the cap on business loans would make credit unions into tax-exempt banks," ABA Chairman Stephen Wilson told the panel.