Jim Nussle Testifies to HFSC on Regulatory Relief
July 11, 2016
July 12, 2016
With reporting from CUNA.
“A constant refrain I hear from our members is that they’re being crushed by regulations implemented mostly in response to a crisis they neither caused, nor contributed to. The time and financial costs of regulatory burden impedes the ability of credit unions to serve their members, and is really the leading driver of credit union consolidation, which has accelerated since 2010 and is now at a record pace.”
This was part of the message shared by Credit Union National Association President & CEO Jim Nussle in his testimony to the House Committee on Financial Services on Tuesday.
Nussle continually outlined the regulatory burden placed on credit unions in recent years, and submitted to the committee a copy of CUNA’s comprehensive regulatory burden study, which estimates that regulatory burden cost America’s credit unions and their members $7.2 billion in 2014, up from $4.4 billion in 2010.
Title I of Hensarling’s bill would reduce regulatory burdens for credit unions and other financial institutions with greater than a 10 percent leverage ratio. Approximately 65 percent of all credit unions fall under this category—credit unions that hold roughly 62 percent of assets and serve nearly 60 percent of credit union members.
“We appreciate that this legislation structures the higher capital threshold as an option, rather than a requirement,” Nussle said. “We would ask you to resist efforts to require credit unions to hold additional capital because this could reduce their ability to lend to credit union members; further, such a requirement would be inappropriate and unnecessary for credit unions because they don’t have a history of capital inadequacy.”
Click here for more from CUNA’s reporting on the hearing.
CUNA’s Ryan Donovan Shares 360-Degree Advocacy Recap for First Half of 2016
CUNA has notched several victories on the advocacy front in the first half of 2016, said CUNA Chief Advocacy Officer Ryan Donovan.
In the most recent Advocacy Update, Donovan outlines the successes of CUNA’s 360-degree advocacy approach, and the possibilities for future wins in the second half of 2016.
Wins on the regulatory front include the NCUA finalizing its member business lending rule, credit unions sending more than 8,000 comment letters in support of the agency’s field-of-membership proposal and more.
CUNA has also seen victories in congressional pressure on the Consumer Financial Protection Bureau to use its statutory exemption authority, and on the judicial front in its Home Depot data breach case and interchange surcharge case.
In the video, Donovan also outlines CUNA’s plans for a charter enhancement effort and continuing litigation strategy to achieve its public policy goals going forward.
Questions about this story? Contact Eric Horvath: 503.350.2222, firstname.lastname@example.org.