NWCUA Board Chair Makes National Case for Supplemental Capital
October 19, 2012
October 18, 2012
The Hill, considered a must-read for federal lawmakers, showcased the work this week of Northwest Credit Union Association (NWCUA) Board Chair Debie Keesee. Keesee, who is also the president and CEO of Spokane Media Federal Credit Union, wrote an op-ed piece outlining the need among credit unions for supplemental capital.
Entitled, “Remove restrictions imposed on U.S. credit unions,” the article outlines some of the credit union movement’s current successes before addressing the burdens and consequences of credit unions’ lack of access to alternative capital.
“Despite the important role credit unions play in America, the restrictions they face are burdensome,” Keesee wrote. “Under the current law, U.S. retail credit unions (unlike their foreign counterparts and unlike low-income U.S. credit unions) are not allowed to accept additional capital to supplement their retained earnings.
“Without access to this supplemental capital, increases in new deposits may dilute a healthy credit union’s net worth ratio, triggering potential regulatory actions. As a result, some financially sound credit unions are being forced to discourage deposits from their members and curtail some of the services that they offer. This makes no sense.”
Keesee’s piece was published in the afternoon on Thursday, Oct. 18. Read the full article here.
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