WASHINGTON — NCUA Chairman Debbie Matz told a panel of skeptical senators that raising the cap on member business loans would actually improve credit unions’ risk environment while creating more jobs.
Hearing shows credit unions and banks still far apart on member business lending.
NCUA Chairman Debbie Matz is the lead witness in Thursday’s Senate Banking Committee hearing on legislation to raise the cap on member business loans.
Efforts to delay the implementation of the Federal Reserve’s debit interchange rule continued on Capitol Hill and at the grassroots level last week.
Here we go again. Saying that it would “expand the options for small businesses at no expense to taxpayers,” Sen. Mark Udall (D-Colo.) last week reintroduced a measure to raise the cap on member business lending from 12.25% of assets to as much as 27.5% of assets.
On issues such as debit interchange and limiting the growth of future regulations, banks and credit unions are on the same side of the political divide. On others, such as credit unions’ tax-exempt status and raising the cap on member business lending, the industries’ interests diverge.
The Federal Reserve’s proposed rule regulating interchange is unconstitutional and would do “irreparable harm to issuers and consumers.’’
Diane Casey-Landry, American Bankers Association executive vice president and chief operating officer, announced today that she will leave the group at the end of March.
The NCUA's rescue plan for corporate credit unions should "cast doubt on the wisdom and the fairness of their tax-exempt status," Independent Community Bankers of America President/CEO Camden Fine wrote Treasury Secretary Tim Geithner today.
The regulatory restructuring bill-which CUNA and NAFCU are opposing because of the interchange provisions-is likely to come up for a vote in the Senate this week, and odds are it will pass.