NCUA Creates FOM, Capital Groups
NCUA Board Chairman Debbie Matz has announced the creation of two working groups that will be dedicated to secondary capital for low-income credit unions and field of membership.
The groups will be led by NCUA officials, according to the regulator.
The NCUA Board approved a notice and request for comment at the board meeting Thursday regarding the Economic Growth and Regulatory Paperwork Reduction Act of 1996. The EGRPRA requires Federal bank regulatory agencies to review their existing regulations once every 10 years in an effort to eliminate unnecessary regulatory burden.
Matz said 33 rules were open for comments at the beginning of the review process in May through September and the agency received several ideas regarding how to enhance federal charters.
The agency also received feedback on ways to increase the value of secondary capital for low-income credit unions, she added.
Bill Myers, director of NCUA’s Office of Small Credit Union Initiatives, will lead the Secondary Capital Working Group.
Matz said the group will consult representatives of low-income credit unions with federal and state charters.
“We are pleased that NCUA listened to our recommendation to make the process easier for low-income credit unions to get supplemental capital,” Carrie Hunt, SVP of government affairs and general counsel, said.
Matt Biliouris, deputy director of NCUA’s Office of Consumer Protection, will lead the FOM Working Group.
The agency also received a wide range of comments from the industry about member business lending.
“We are considering those thoughtful comments as we plan to modernize our MBL rule next year,” Matz said.
CUNA President/CEO Jim Nussle said, “There is much work to do here and CUNA is ready to roll up our sleeves and help move regulatory improvements forward. We are pleased that these initiatives are going forward with the support of the other two board members.”