WASHINGTON - Citing the pressure that many credit unions are facing because of the economy, NCUA Board member Gigi Hyland vowed today to redouble efforts to persuade Congress to let credit unions accept supplemental capital.
"I am committed to working with the state supervisors to expeditiously resolve if and how supplemental capital can be correctly structured and serve as an appropriate safety and soundness tool for the NCUA and state supervisory authorities in regulating U.S. credit unions," she said in a statement.
Hyland, who is the agency's liaison to NASCUS, noted that her conversations with state regulators had persuaded her that the additional capital was needed to ensure credit unions could continue to provide necessary services to their members.
NASCUS President and CEO Mary Martha Fortney praised the announcement.
"NASCUS and state regulators believe access to supplemental capital for credit unions is a critical safety and soundness issue," she said. "As we have repeatedly stated, now is the time to make the necessary changes to ensure that credit unions are well positioned into the future, maintain their safety and soundness and protect and grow liquidity. We are pleased by NCUA's willingness to review the issue in collaboration with state regulators."
Hyland said that additional capital sources will be one of the topics at the agency's symposium next June commemorating the 75th anniversary of the Federal Credit Union Act.
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