Money and the U.S. Capitol
America's Credit Unions urged lawmakers to advance regulatory reforms for community financial institutions as the House Financial Services Committee prepared to mark up legislation aimed at expanding access to capital.
In a letter to committee leaders, the trade group voiced support for H.R. 6955, the Main Street Capital Access Act, which would modernize several regulatory provisions affecting credit unions and other smaller lenders.
The association said the bill includes several long-standing priorities for credit unions, including updates to corporate credit union governance rules and the creation of a Community Development Financial Institutions (CDFI) advisory committee to improve transparency and oversight of the program.
America's Credit Unions President/CEO Scott Simpson also encouraged lawmakers to include additional reforms as the legislation moves forward. Those proposals included updating the Expanding Financial Access for Underserved Communities Act to provide parity for de novo credit unions and modernizing restrictions on member business lending.
The organization also raised concerns about regulatory limits on federal credit unions' ability to access Federal Home Loan Bank liquidity and invest in certain assets, arguing that modernization could help credit unions better meet members' financial needs.
"Each of these smaller measures provides important modernizations, relief, tailoring, and flexibilities for both banks and credit unions," Simpson wrote in the letter.
The group said it will continue working with lawmakers to expand reforms and ensure regulatory relief keeps pace with changes in the financial services marketplace.
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