Saying credit unions should not be discouraged from accepting deposits for fear of their negative impact on capital, NCUA Chairman Debbie Matz today urged Congress to give credit unions more options in accepting outside capital.
She urged lawmakers to allow certain credit unions to exclude from "total assets" those that have virtually no risk of loss, such as Treasury securities. Those credit unions would have to attain a minimum net worth as determined by the NCUA and show that share growth is the cause of their declining net worth ratio.
Matz also urged lawmakers to allow credit unions, as certified by the NCUA Board, to issue alternative forms of capital.
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In a letter to House Financial Services Committee Chairman Barney Frank (D-Mass.) she said such alternative forms would "allow well-managed credit unions credit unions to better manage net worth levels under varying economic conditions."
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