NCUA Chairman Debbie Matz expressed her support for H.R. 719, the Capital Access for Small Business and Jobs Act, in a May 2 letter to the bill’s sponsor, Rep. Peter King (R-N.Y.).
The bill would allow credit unions to utilize uninsured, non-share accounts to supplement capital.
“Your legislation would provide credit unions with an additional tool to promote sufficient capital stability – even under adverse economic conditions – and ensure that healthy credit unions would no longer be forced to turn away deposits in order to protect their net worth ratio,” Matz wrote in the letter.
The bill would also reduce “downstream risks” to the National Credit Union Share Insurance Fund to absorb losses, the NCUA Board chair said, adding that protection of the NCUSIF is “the top priority” of the board.
Matz, who according to the letter met in person with King to discuss the bill, praised three key components added to the bill’s final language that would require proper disclosures, ensure the accounts are consistent with Basel standards and Federal Home Loan Bank standards, and would not affect existing members’ rights nor confer such rights on non-members.
“Given the important improvements you have made to your bill, I support H.R. 719,” she said. “Should Congress choose to enact this prudent legislation, NCUA will promptly propose the necessary rule changes required for implementation.”
CUNA, NAFCU and NASCUS have all gone on record in support of the bill, which was reintroduced Feb. 14 after failing to advance beyond committee last Congress.
It currently has 27 co-sponsors, consisting of 20 Democrats and seven Republicans. A companion bill has not been introduced in the Senate.