Hunt says credit unions feeling the squeeze

first_img 3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt said Tuesday that the House Financial Services Committee’s hearing on the draft “Financial CHOICE Act” demonstrates the importance of striking the right capital balance so financial institutions may thrive.The draft legislation, from committee Chairman Jeb Hensarling, R-Texas, includes a NAFCU-supported repeal of the Durbin amendment and relief for well-capitalized institutions from certain restrictions imposed by functional regulators. The draft bill contemplates a regulatory burden “off ramp” for institutions with capital ratios exceeding 10 percent.“The crush of regulatory burden, primarily from [CFPB] rules, and the current rate environment have put a squeeze on credit unions,” said Hunt. “As member-owned, not-for-profit cooperatives, credit unions are conservatively run institutions with strong capital. Credit unions deserve exemption from regulations designed to control greed, and they need capital rules tailored to recognize the credit union difference and business model.” continue reading »last_img

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