Reps. Pete King (R-N.Y.) and Brad Sherman (D-Calif.) Thursday reintroduced a bill that would permit the NCUA to allow healthy and well-managed credit unions to accept supplemental forms of capital.
NASCUS said in a release that state credit union regulators have long recognized credit unions are disadvantaged by a capital structure limited to retained earnings. This legislation would provide the solution to this problem, the group said.
"NASCUS applauds the introduction of this bill and enthusiastically supports its intent and passage by Congress," said NASCUS President/CEO Mary Martha Fortney. "For NASCUS and state regulators, access to supplemental capital for credit unions has always been a matter of safety and soundness."
NAFCU President/CEO Fred Becker said capital reform is one of his organization’s five key points for regulatory relief, making the bill a priority.
“We are pleased that the legislation preserves the not-for-profit structure of credit unions and ensures that ownership remains with the credit union’s members,” he said.
CUNA President/CEO Bill Cheney said the bill would improve safety and soundness by allowing credit unions to develop a capital cushion, reducing risk to the NCUSIF. H.R. 3993, a supplemental capital bill introduced during the 112th Congress, had 45 co-sponsors but never advanced beyond committee. No companion bill was introduced in the Senate.
