WASHINGTON-NAFCU talked Prompt Corrective Action with newly installed Treasury Assistant Secretary for Financial Institutions Emil W. Henry, Jr. last week. In a follow-up letter, NAFCU President and CEO Fred Becker wrote to thank him for his time and review the need for the Credit Union Regulatory Improvements Act (H.R. 2317). "As I noted in our conversation, the current capital system for credit unions treats a new, one-year unsecured $10,000 loan the same as a 30-year mortgage that is on its last year of repayment, something that simply does not make sense." he wrote. "Simply stated, the current system unfairly penalizes well-run, risk-averse credit unions even though the credit union community, as a whole, has a very good loan loss history. Finally, the system fails to reflect the true cost of credit unions that actually do have risky portfolios." "Including PCA reform in the regulatory relief package would enable the NCUA to better manage the risk of the National Credit Union Share Insurance Fund (NCUSIF) and improve safety and soundness," Becker advocated. "Furthermore, the capital that credit unions are currently required to keep in reserve could otherwise be used to provide services to members." He concluded, "We sincerely hope that the Treasury Department will be able to express its support to Congress for a much needed risk-based PCA system for credit unions."