WASHINGTON–With NCUA having now announced two rounds of proposed regulatory changes associated with NCUA’s Deregulation Project, America’s Credit Unions said there are still a number of changes it is seeking from the agency.
As the CU Daily reported here and here, the Deregulation Project will involve a comprehensive review of regulations documented in Title 12, Chapter VII of the Code of Federal Regulations.
“This review will ensure the regulations are focused on the safety, soundness, or resilience of credit unions,” NCUA said.
Banking Regulators Have Already Acted
Greg Mesack, senior VP of advocacy with ACU, said there are a “whole bunch of things” the trade group wants to see NCUA also take action on, beginning with capital reform. He noted the banking regulators have already announced changes related to capital.
“It’s just recognizing it’s a competitive landscape,” Mesack said, citing what he called a “rightsizing” of the bank leverage ratio.
He urged NCUA to recognize the “advances in capital measurement and metrics” that are being made while also finding ways to ensure safety and soundness.
“Providing some capital relief will give institutions more funds to invest in local communities,” Mesack said.
America’s Credit Unions sent a letter to NCUA outlining what the capital reforms it would like to see, in addition to other requests.
“This is a great effort and I think we’re starting to see the beginning of it,” Mesack said of NCUA’s initiatives. “There’s going to be more relief coming down the pipe, so there are a lot more opportunities to work with them to find ways to provide more common sense regulatory relief.”
