WASHINGTON — Changing the rules to make it easier for credit unions to give business loans to their members will "pose additional risk" to NCUA's Share Insurance Fund, the American Bankers Association wrote the agency in a letter filed today.
ABA Senior Economist Keith Leggett said the recent failures of several credit unions were in part the result of losses stemming from the defaults of some of their business loans. And making it easier for credit unions to give out these loans would "increase risks in areas that neither credit unions nor the NCUA have been constituted to manage effectively," he wrote.
Leggett cited NCUA data showing that delinquency rates on MBLs was 2.58% after the first quarter of 2008, a 60% increase from last year.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
