WASHINGTON (6/7/13)--A letter from the chair of the National Credit Union Administration to the Financial Accounting Standards Board on its pending proposal on credit losses will help reinforce credit unions' concerns, Credit Union National Association President/CEO Bill Cheney has said in a communication to NCUA Chairman Debbie Matz.
However, he criticized a joint letter filed by senior staff of a federal financial institutions regulators' group, saying it "does nothing to address distinctions between credit unions and big banks--which the proposal is intended to do in the first place."
In a letter sent Thursday to NCUA Chair Debbie Matz, Cheney stated that CUNA does not agree with key aspects of the joint letter to FASB on the board's proposed changes to the methodology for recognizing and reporting credit losses.
Cheney also stated that the joint letter also discounted "the impact of the proposal on earnings, which we feel is a major concern that must be factored into FASB's deliberations."
But Cheney noted that Matz' own letter to FASB would be of help to credit unions. "Although we feel the proposal will negatively impact institutions of all sizes, your letter focusing on concerns relative to a number of credit unions should help reinforce the problems this ill-advised proposal would create for many credit unions of all sizes," Cheney wrote.
CUNA filed a strongly worded letter with the FASB opposing its proposal May 29; the comment period closed May 31.