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.

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