Call for credit union parity following Fed vote to advance bank capital rule reductions

The Federal Reserve voted Wednesday to advance a proposal that would reduce a banking capital rule—the enhanced Supplemental Leverage Ratio (eSLR)—for big banks. By lowering the eSLR standard, the proposed change would allow big lenders to recalibrate the capital they hold on their balance sheet.

Reducing banks’ capital requirement is also backed by the FDIC and the Office of the Comptroller of the Currency, which is led by former NCUA Chairman Rodney Hood.

America’s Credit Unions is calling for parity in capital requirements as the proposal moves forward. A public comment period will take place over the next two months.

“America’s Credit Unions remains committed to securing true capital parity for credit unions as bank rules evolve. While credit unions have a statutory regime separate from banks, capital is key to growth and serving members and we must not be put at a disadvantage to banks. We support other capital regimes that help keep credit unions on an equal footing with comparable banks while maintaining safety and soundness." said America's Credit Unions Chief Advocacy Officer Carrie Hunt. “We will continue to engage with the NCUA, Congress, and other stakeholders to advance these and any other viable strategies. Ensuring a fair, flexible capital regime remains central to our mission of serving America’s 142 million credit union members.”