WASHINGTON — Credit union efforts to gain access to additionalcapital got a boost last week when NCUA Board Member Gigi Hylandpromised to accelerate lobbying efforts on the Hill to allow creditunions access to supplemental capital.
“Permitting credit unions to accept supplemental capital requirescongressional action, so the sooner we get started on this effort,the better. I am committed to working with the state supervisors toexpeditiously resolve if and how supplemental capital can becorrectly structured and serve as an appropriate safety andsoundness tool for the NCUA and state supervisory authorities inregulating U.S. credit unions,” she said.
Hyland, who is NCUA's liaison to NASCUS, said the impact of therecession on credit unions has made this an especially importantissue.
CUNA, NAFCU and NASCUS have all supported capital reform. Officialsof all the groups praised Hyland's initiative. However, theycautioned that it could be difficult getting it passed in the nextCongress, in light of everything else lawmakers will be dealingwith.
NAFCU President/CEO Fred Becker applauded Hyland's announcement andsaid he and his staff had received “positive feedback” from CapitolHill.
CUNA Vice President of Legislative Affairs Ryan Donovan said theatmosphere in Congress about the subject is positive even though“no one has said, let's do this now.”
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