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Cost Of Reg Burden Gets Human Face From CUNA Witness

The overwhelming regulatory burden, and the difficulty of raising capital, have made it more difficult for her credit union to reach out effectively to the Hispanic community in her area, the Credit Union National Association's witness told a hearing today on providing credit unions with regulatory relief.
CUNA witness Pamela Stephens, answering questions during the just-recessed House Financial Services subcommittee hearing on credit union regulatory burden, succeeded in putting a face to the human cost of regulatory burden during the extensive question-and-answer session of the hearing.
Stephens, CEO of Security One FCU, Arlington, Texas, emphasized that her credit union is trying to reach out to the Hispanic community in her area, but regulatory burden and difficulty raising capital have made that more difficult. She made an appeal to remove a current restriction that credit unions may only use retained earnings as capital.
Also in response to a question, Stephens emphasized that a one-size-fits-all approach to financial services regulations, where a "Bank of America" and a small institution like a credit union is treated the same--and rules aimed at financial services "bad actors" are applied to community-minded and responsible players like credit unions--impede a credit union's ability to serve all its members.

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[House Committee webpage]

Tags: regulatory relief, Congress


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