ARLINGTON, Va. — The credit union model is not sustainable without access to supplemental capital and more ability to make business loans, Co-Op Financial Services President/CEO Stan Hollen told a group of credit union executives.
Allowing supplemental capital would make credit unions more competitive because "some banks can count debt as capital, and we should be able to do it," he said during remarks at a July 26 meeting of the Metropolitan Credit Union Management Association.
He noted that the supplemental capital isn't a panacea, but it would be a boost for healthy credit unions, especially if it is structured so that only member capital is allowed. Otherwise, there will be undue pressure to focus on revenue, rather than what is good for the members, he added.
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