The NCUA's risk-based capital rule will force many credit unions to curtail much-needed services simply to comply with an ill-conceived regulation, Brian Ducharme, president /CEO of the MIT Federal Credit Union, told a House subcommittee Thursday.
"With the rule set to take effect a year from now, credit unions must soon begin shifting their portfolios to come into compliance," Ducharme said, in testimony prepared for a hearing before the House Financial Institutions Subcommittee. "This could lead to some institutions constraining lending in 2018 as they seek to maintain their capital level and capital cushion under the new regime."
MIT Federal Credit Union is located in Cambridge, Mass. and has more than 36,000 members and almost $545 million in assets.
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:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 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.
