WASHINGTON — Credit union efforts to gain access to additional capital got a boost last week when NCUA Board Member Gigi Hyland promised to accelerate lobbying efforts on the Hill to allow credit unions access to supplemental capital.
“Permitting credit unions to accept supplemental capital requires congressional action, so the sooner we get started on this effort, the better. I am committed to working with the state supervisors to expeditiously resolve if and how supplemental capital can be correctly structured and serve as an appropriate safety and soundness tool for the NCUA and state supervisory authorities in regulating U.S. credit unions,” she said.
Hyland, who is NCUA's liaison to NASCUS, said the impact of the recession on credit unions has made this an especially important issue.
CUNA, NAFCU and NASCUS have all supported capital reform. Officials of all the groups praised Hyland's initiative. However, they cautioned that it could be difficult getting it passed in the next Congress, in light of everything else lawmakers will be dealing with.
NAFCU President/CEO Fred Becker applauded Hyland's announcement and said he and his staff had received “positive feedback” from Capitol Hill.
CUNA Vice President of Legislative Affairs Ryan Donovan said the atmosphere in Congress about the subject is positive even though “no one has said, let's do this now.”
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