Banking groups are blasting the NCUA for considering expanding options for credit unions to build capital beyond retained earnings, charging that such an expansion would violate federal law.
The American Bankers Association and the Independent Community Bankers of America leveled the charges, as they filed comments on the NCUA proposal. Tuesday was the deadline for submitting comments on the Advanced Notice of Proposed Rulemaking.
The NCUA board approved that notice at its January meeting in an effort to examine what types of capital credit unions could issue. The board posed several questions in the notice, which allows the board to gather comments before deciding whether to propose rules. Those questions included potential tax implications, particularly for state-chartered credit unions.
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