Rep. Erik Paulsen (R-Minn.) said the NCUA's proposed risk-based capital rule would cause many credit unions in his state to raise lending and financial services fees as well as reduce dividend payments to members.
"Before proceeding with a final rule, I would encourage the NCUA to take into account the economic impact of this added burden on the state's credit unions," Paulsen wrote Monday in a letter to NCUA Board Chairman Debbie Matz.
The House Ways and Means committee member said 9% of his state's credit unions covered under the rule, would fall from well-capitalized to adequately-capitalized. He said many of these credit unions would have to raise additional capital to comply.
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