WASHINGTON–Congressmen Paul Kanjorski (D-Pa.) and Ed Royce (R-Calif.) introduced the Credit Union Regulatory Improvements Act at deadline last week.
H.R. 1537 contains provisions to establish a risk-based capital framework for credit unions and lift the member business lending cap to 20% as it did last year. "Based on the recent recommendations of the federal credit union regulator, these enhanced risk-based and prompt corrective action standards will ensure the efficient allocation of capital, while protecting taxpayers," Royce stated.
However, in response to NCUA's decision to halt non-multiple common bond credit unions from adopting underserved areas, the legislation would also permit all federally chartered credit unions to adopt underserved areas. "The new bill would allow all [federal] credit unions to operate in such places enabling them to assist in community revitalization and economic renewal efforts," Kanjorski commented.
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It would also increase credit union to mutual savings bank conversion voter participation requirements from none under current law to a 30% minimum. Last year's CURIA included a 20% minimum voter participation. CUNA and NAFCU issued a joint statement commending Royce and Kanjorski for introducing the bill.
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