Post-Hearing Risk-Based Capital, Business Lending Bills Expected
Three credit union witnesses testified April 10 in a House Financial Services Committee Financial Institutions Subcommittee hearing that rules and regulations mandated by the Dodd-Frank Act are interfering with credit unions’ ability to serve their members.
“I understand that it is often difficult to pinpoint specific rules and regulations that are especially burdensome for credit unions; rather it is the cumulative effect of new regulations being layered on top of old regulations,” said Financial Institutions Subcommittee Chairwoman Shelley Moore Capito (R-W.V.) during her opening remarks.
Committee members appeared to be interested in finding solutions to regulatory burden. A few asked the panel, which also included General Counsel Mitchell Reiver of the $1.8 billion Melrose Credit Union, to name one regulation that could be eliminated or modified that would make the biggest difference at their institution. The response was overwhelming: direct the CFPB to implement an exemption for credit unions.
Members of the committee also indicated a desire for a regulatory legislative package that would benefit both community banks and credit unions. Rep. Gregory Meeks (D-N.Y.) asked the question twice, saying he would be asking the same of community banker witnesses next week.