WASHINGTON — In a cooperative action, CUNA and NAFCU have jointly sent a letter to Senator Christopher Dodd (D-Conn.) chairman of the Banking, Housing and Urban Affairs Committee opposing an amendment authored by Senator Mike Crapo (R-Idaho) that would provide significant regulatory relief to banks but not credit unions.

Crapo filed his amendment in advance of a committee markup of a bill addressing the regulation of industrial loan companies. The measure would make more community banks eligible for an 18-month exam schedule, increase small business loans for thrifts, remove limitations on investments in auto loans and repeal the prohibition on banks offering interest on business checking.

“While we recognize the intent of Crapo amendment #4 to the ILC bill, we do not support it as submitted because we believe it is unbalanced by including provisions which would increase the business lending limits and auto lending investment limits for thrift institutions while providing no parallel increase in credit union business lending caps or modification of the credit union prompt corrective action system to a risk-based approach,” the associations wrote in their Feb. 12 letter.

“We continue to view it as inappropriate for Congress to consider a substantial expansion in thrift business lending, and a significant enhancement of the thrift charter, in the absence of similar substantial relief for America's credit unions,” they added.

CUNA has also reported that Crapo has decided to withdraw the amendment, but his office has not yet confirmed this.