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Statement

ABA Statement on NCUA Vote to Delay Credit Union Capital Rules

“Since 2014, every bank in the country has had to adopt and comply with risk-based capital rules recommended by regulators around the world, so it defies simple logic that the NCUA would propose again to delay imposing comparable rules for the nation’s credit unions, when the agency is simultaneously allowing and encouraging credit unions to operate exactly like banks. As documented at today’s NCUA meeting, this delay is even more troubling when you consider that these rules could have helped prevent the nearly $1 billion in losses to the credit union insurance fund stemming from the failure of credit unions involved in New York’s much-publicized taxi medallion lending scandal.

“Instead of moving forward with these capital rules, NCUA is delaying them for another two years, while also making clear it will move forward with plans to allow member-owned credit unions to issue debt to sophisticated profit-seeking investors, an idea that bears no resemblance to the basic principles that underpin the credit union movement. Today’s action by the NCUA only adds to the long list of reasons why members of Congress need to question whether this regulator is doing its job or simply promoting the runaway growth of an industry it’s supposed to be overseeing.”

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $18 trillion banking industry, which is composed of small, regional and large banks. Together, America’s banks employ more than 2 million men and women, safeguard nearly $14 trillion in deposits and extend more than $10 trillion in loans.

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