Can the NCUA back the effort underway to increase the member business lending cap while at the same time help spot and aid troubled loan portfolios?

John McKechnie, NCUA director of congressional and public affairs, said the regulator supports efforts currently underway in Congress to increase the MBL cap statutorily, in tandem with the gradual, incremental approach that includes additional regulatory safeguards. However, weaknesses in the commercial real estate market have led to increased supervision of MBLs.

"Credit risk has been an area of emphasis for the past few years at the NCUA and remains so. This includes all forms of loan products, including MBLs," McKechnie said. "We are not specifically targeting MBLs. Instead, any credit union showing signs of stress is receiving additional oversight from the NCUA."

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