WASHINGTON — Any effort to improve the way financial services are regulated should include giving credit unions a risk-based capital system because it would benefit consumers, CUNA President Dan Mica wrote chairman and ranking Republican of the House Financial Services Committee.
"As a result of the rigid statutory capital requirement, the general risk-averse nature of credit unions and their inability to access secondary capital, the average capital ratio of credit unions is 11%, 4 % higher than the statutory requirement to be 'well capitalized,'" Mica wrote.
The money represented by the difference could be put to use to benefit the consumers and the economy, he added.
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