Fincher, Posey, Heck Introduce Bill to Prevent Overregulation in Local Communities
Press Release
Representatives Stephen Fincher (TN-08), Bill Posey (FL-08) and Denny Heck (WA-10) recently introduced the Risk-Based Capital Study Act of 2015 (H.R. 2769), legislation that requires the National Credit Union Administration (NCUA) to perform a study of appropriate capital requirements for credit unions.
"Overregulation hurts everyone, and many times, growing opportunities for folks in my District begins by blocking regulatory burdens on financial institutions that hinder economic growth," said Congressman Fincher. "We have seen time and again these regulatory proposals that look more like a solution in search of a problem than a step toward growing our economy and ensuring the security of our financial system. Our bill puts appropriate requirements in place to ensure that local communities are not unduly burdened by overregulation."
"Millions of Americans utilize the financial services offered by credit unions, which are struggling to comply with an ever-growing regulatory burden. We need to ensure that the NCUA rule doesn't hamper the ability of credit unions to provide these critical services to our communities," said Congressman Posey.
Background on H.R. 2769:
While the revised proposal addresses some concerns expressed by Congress and by credit unions regarding the initial proposal, it still has raised a lot of concern in the credit union community -- as evidenced by the revised proposal receiving over 2,150 comments during the comment period. A thorough study of the proposal before it moves forward is necessary to ensure credit unions and the communities they serve are not unduly burdened. Given the critical role credit unions play in lending to our local communities, it's absolutely imperative that this proposal is reviewed closely before a judgment is made relative to moving forward.
The Risk-Based Capital Study Act of 2015 would require the NCUA to provide to Congress an analysis on their legal authority with respect to certain aspects of the proposal, rationale behind the risk-weights assigned to various asset classes, and a close look at how the proposal would impact lending to credit union members before moving forward with their proposed rule.
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