The NCUA's risk-based capital rule will force many credit unions to curtail much-needed services simply to comply with an ill-conceived regulation, Brian Ducharme, president /CEO of the MIT Federal Credit Union, told a House subcommittee Thursday.
"With the rule set to take effect a year from now, credit unions must soon begin shifting their portfolios to come into compliance," Ducharme said, in testimony prepared for a hearing before the House Financial Institutions Subcommittee. "This could lead to some institutions constraining lending in 2018 as they seek to maintain their capital level and capital cushion under the new regime."
MIT Federal Credit Union is located in Cambridge, Mass. and has more than 36,000 members and almost $545 million in assets.
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