An overwhelming – yet growing – regulatory burden on smaller institutions presents very serious concerns for credit unions, and can be addressed by a presidential executive order calling for a moratorium on new rules, according to a letter CUNA has sent Cass Sunstein, the Office of Management and Budget’s administrator.
This is the second request this week CUNA has made to federal agencies seeking regulatory relief.
In the message, CUNA President and CEO Bill Cheney asked that Sunstein urge President Obama to issue another executive order to independent regulatory agencies, including the NCUA, calling for a moratorium on new rules that would impose “regulatory burdens that are not required by statute or necessitated by serious, material, quantifiable and well-documented safety and soundness concerns.”
Cheney stated credit unions were appreciative of the president’s order last July urging federal agencies, including NCUA, to improve the regulatory environment for entities under their jurisdiction, and to report back to OMB how they were taking action.
“These are positive steps,” he said. “Yet, smaller institutions, such as credit unions, are in great need of meaningful regulatory relief – the kind of relief that they have not seen as of yet.”
The CUNA leader also urged the Sunstein to consider establishing an Office of Regulatory Burden Monitoring, which would focus on measuring and scrutinizing the extent of the regulatory burdens that entities, such as credit unions, must bear.
“Such an office could also give regulated entities additional recourse in terms of having their regulatory burdens reviewed,” Cheney wrote.
“We urge you to help achieve a regulatory moratorium, and we would welcome the opportunity to discuss this letter with you at your convenience. Thank you for your attention to this most important concern for credit unions,” the letter concluded.