Search
 
Commentary

Supplemental Capital Is Good for Credit Unions and America

CU Capital Market Solutions leader encourages the CU community to applaud the NCUAs recent steps in the right direction.

By Robert Colvin | Updated on October 27, 2016

The NCUA board took another step in the right direction Thursday when it conducted a briefing on supplemental capital. Extending supplemental capital authority to all credit unions has been discussed for many, many years, but today the first step was taken to make this a reality, and we applaud the board for its actions.

The expansion of access to secondary capital is long overdue for credit unions. With the exception of low-income designated institutions, credit unions are the only financial institutions in the country that do not have access to secondary capital sources. As a result, they must rely primarily on retained earnings to build capital and grow their asset base, which presents a philosophical dilemma.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Why Your CU Needs a Chief Data Officer

Why Your CU Needs a Chief Data Officer

Henry C. Meier, Esq. |

There are too many data-related questions to answer and legal issues hanging around to not have a data chief at the helm.

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.