Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
NEW: CUNA Underscores Need Of Supp. Cap. For Hill Staffers
WASHINGTON (7/18/13, UPDATED 12:54 p.m. ET)--At a briefing today for Capitol Hill staffers on issues surrounding the need for credit unions to have access to supplemental forms of capital, Credit Union National Association President/CEO Bill Cheney said every credit union "can benefit from the option of supplemental capital."
 
Twenty percent of credit unions saw their capital decline 2% during the economic downturn, Cheney noted, adding that new sources of capital would be a tool that would help credit unions better serve their members.
 
Under current law, a credit union's net worth ratio is determined solely on the basis of retained earnings as a percentage of total assets.  
 
Also at the briefing, Rep. Peter King (R-N.Y.) called the current stature that limits credit union capital to retained earnings a "quirk" in the law.
 
"As the economy is trying to rebound, the last thing we need is quirks in the law to hurt on of our mainstays" in the financial services arena, he said.
 
King has introduced legislation that would allow well-capitalized credit unions to match a growing deposit base from a growing membership with capital from sources other than retained earnings. CUNA supports the their "Capital Access for Small Business and Jobs Act" (H.R. 719).
 
"We are going to push this bill. It is not going to be easy. The banks are opposed. We are going to tie it to a larger regulatory relief bill," King told the gathering.
 
The head of the Credit Union Association of New York, Bill Mellin, also participating in the briefing, noted supplemental capital does not change the credit union structure: "It doesn't change who owns and runs the credit union. We remain cooperative and member-owned; one member, one vote. We are very different from banks."
 
And Linda Armyn, of Bethpage FCU in Long Island, N.Y., shared a cautionary tale. Armyn said that credit unions in her state had to slow branch growth because new deposits lowered capital ratio.
 
"There is a negative effect on the community when credit unions have to slow growth," she noted.


RSS





print
News Now LiveWire
A recent report from @TransUnion says consumers born 1981 or later made up 27% of total auto-loan originations in 2014, up 16% from 2009.
6 hours ago
.@CUNA says new House bill is "further evidence" of lawmakers' interest in how @TheNCUA uses its funds from CUs. See News Now Monday.
1 day ago
.@MECreditUnions announces winner of @YoungFreeME #SoundOff contest. @Sassquatch_Band will play Old Port Festival in June @PDD_Downtown
1 hour ago
House Financial Services Com. to hold March 3 hearing to receive the semi-annual report of @CFPB Director Richard Cordray.
1 hour ago
Rep. Jeff Miller (R-Fla.) re-introduced bill to ease veterans' access to loans for #smallbusiness purposes from a #creditunion (HR 1133)
3 hours ago