Rep. Erik Paulsen (R-Minn.) said the NCUA's proposed risk-based capital rule would cause many credit unions in his state to raise lending and financial services fees as well as reduce dividend payments to members.
"Before proceeding with a final rule, I would encourage the NCUA to take into account the economic impact of this added burden on the state's credit unions," Paulsen wrote Monday in a letter to NCUA Board Chairman Debbie Matz.
The House Ways and Means committee member said 9% of his state's credit unions covered under the rule, would fall from well-capitalized to adequately-capitalized. He said many of these credit unions would have to raise additional capital to comply.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
