WASHINGTON, D.C. – Representatives Frank Guinta and Rubén Hinojosa, joined by over two dozen Republican and Democratic House members, are urging the National Credit Union Administration (NCUA) to extend its examination cycle for well-run credit unions to 18 months from twelve.
“The number of credit unions continues to decline, down by nearly a quarter since 2008, due in no small part to overly burdensome regulations on the industry,” write the bipartisan members in a letter to NCUA Chairman Debbie Matz. “We strongly encourage the agency to implement a new extended examination schedule for credit unions to help your regulatory relief efforts.”
The NCUA named 2015“The Year of Regulatory Relief” – a year that ended with credit unions like St. Mary’s Bank in New Hampshire, the oldest one in the country, still waiting on a simple reform.“Unlike the Federal Deposit Insurance Corporation, which monitors banks, the NCUA requires no legislation to move forward with a 18-month examination cycle,” said Rep. Guinta.
The House Financial Services Committee member represents New Hampshire’s First District in Congress.“A mere 6-month extension would result in significant taxpayer savings and better responsiveness at the NCUA,”he said.
In their letter, released to the public today, the 30 House members point out that, before 2010’s Dodd-Frank financial law, the federal agency followed an 18-month schedule that promoted efficiency and effectiveness.
“Credit unions did not cause the financial crisis,” added National Association of Federal Credit Unions President and CEO Dan Berger. “As an industry, we are in extremely sound shape. NCUA should devote more of its resources to the limited number of credit unions that need help.”
“We appreciate that Chairman Matz is open to a longer exam cycle and urge her to approve the change as soon as possible.”
Rep. Rubén Hinojosa, a Democrat who represents Texas’ 15th District, also sits on the House Financial Services Committee.“Our community banks and credit unions are the lifeblood of local and rural communities,"he said. "Credit unions, whose membership is made up of local residents, have a unique understanding of the communities in which they serve.
“They help families purchase homes, farmers plant crops, and small businesses get off the ground,”he said.
“Now that we have provided flexibility for banking regulators to provide an extended exam cycle for community banks, I think it’s time the NCUA use its authority to start planning for an extended exam cycle for well-rated, well-capitalized credit unions.”
The bipartisan letter to Chairman Matz is attached.