BOSTON — Saying credit unions should crawl before they walk, NCUA Board Member Gigi Hyland said that the cap on member business lending should be raised gradually for safety and soundness reasons

Hyland told attendees at NASCUS' State System Summit that the agency is reviewing legislation introduced by Rep. Paul Kanjorski (D-Pa.) to raise the cap from 12.25% of assets to 25% percent and that her position was in her own. She said Congress should give the NCUA the power to raise the cap in stages. It would be better for any increase to "progress at a slow pace" so credit unions can have detailed plans and don't assume unnecessary risk.

She also said it's too early in the discussions for her to take a position on President Obama's proposal to create a new agency to regulate financial products. But she said consumer protection should be a central focus of regulatory policy and accomplished without creating too much additional bureaucracy.

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