R-O-L-A-I-D-S spells relief. That is what Rolaids producers havesaid for years and their product has provided relief for millionsof Americans.

For credit unions across the country relief is L-E-S-S-R-E-G-S.Anything that would lessen the regulatory burden placed on creditunions and make their jobs easier is considered relief.

The voice of credit unions has been heard. The NCUA's chairmanrecently announced that the board will consider granting relief insome areas that will be beneficial to credit unions. Those areasinclude: Greater flexibility in dealing with fixed assets, greaterflexibility on member business lending to allow credit unions tomake more loans and changes to bylaws for federal credit unionsthat will modernize and make more efficient certain aspects of howbusiness is conducted.

Placing these items on the board agenda is a good step in thedirection I have been urging the NCUA to move. For some time now Ihave advocated for a “step back and fresh eyes” review ofregulations credit unions are required to comply with. For overfive years now, since the financial crisis swept over us in 2008,regulators in the financial services industry have beenimplementing regulations they believe are needed to prvent areoccurrence of the problem and make financial institutions strongenough to withstand future economic fluctuations. And, most willagree, much of the new regulations were needed and will serve thepurpose they were written to achieve.

Realistically, however, some of the regulations were perhaps tooaggressive and have actually burdened financial institutions,including credit unions, with excessive regulatory complianceissues.

Now that the dust has settled, credit unions have survived andhandled the fallout from the crisis, the economy has begun toimprove, unemployment continues to decline and consumers are buyingagain. It is time financial regulators step back, review what hasbeen put in place and take corrective action, where needed, to makeit better for the regulated while maintaining the safety andsoundness of the financial services industry.

The NCUA's fixed asset rule is a great place to start as it haseasy fixes that will help credit unions. The member businesslending rule, another area where I have advocated the NCUA can makesignificant changes, will further the growth of lending to smallbusinesses and that will further the growth of the economy. TheNCUA can pursue several other regulatory fixes without the need toinvolve Congress, like changes to the federal credit union bylawsrule, which would make needed procedural changes.

Changes for the good and changes for the better will make creditunions feel relief just like taking Rolaids can.

Michael Fryzel

Attorney and former NCUA board member

Chicago