Regulatory overload is a “death by a thousand cuts” reality for credit unions. That’s how America’s Credit Unions President/CEO Jim Nussle described the cumulative effect of “seemingly benign rule changes that require updates or demand increasing amounts of reporting from credit unions” in a letter to the House Financial Services Committee. 

Submitted in advance of today’s House Financial Services hearing with testimony from federal financial regulators – including NCUA Board Chairman Todd Harper – the letter provided credit union perspective on the current regulatory environment and priorities for the future.

“Even if individual regulations are not inherently challenging, the continuous introduction of new requirements has imposed a significant burden on credit unions. As such, we urge the NCUA to refrain from pursuing new regulatory requirements, absent an overwhelming amount of evidence showing a true need,” Nussle wrote.

The letter outlined several other areas of regulatory concern:

• The National Credit Union Share Insurance Fund is strong and does not require structural reform;
• Expanded third-party vendor/credit union service organization authority is not needed;
• NCUA’s year-after-year budget increases;
• The need for modernization of specific areas of the Federal Credit Union Act;
• Extending the examination cycle;
• Amend the NCUA’s Central Liquidity Facility (CLF) Act to allow for enhancements;
• Additional guidance on digital assets and emerging technologies; and
• Negative impacts of the Federal Reserve Board’s proposed rule on debit interchange caps under Regulation II.

This is the latest regulatory advocacy effort by America’s Credit Unions to ensure regulators pursue an approach that allows credit unions to continue to serve millions of consumers across the country.

Read the full letter here.