WASHINGTON–The American Bankers Association is voicing its opposition to the latest bill in Congress that would raise the member business loan cap for credit unions.
“Given NCUA’s and credit unions’ lack of expertise in business lending, it remains unclear whether this highly controversial bill is necessary or wise,” said ABA EVP James Ballentine in a statement. “ABA will continue to fight all efforts to change or circumvent the member business lending cap.”
The bankers are upset over a bill introduced by Sens. Rand Paul (R-KY), Sheldon Whitehouse (D-RI), and Jack Reed (D-RI), that would raise the member business lending cap for certain credit unions to 27.5% from the 12.25% cap that has been in place since 1998. The legislation would raise the cap for well-capitalized credit unions that have a history of member business lending, have operated near the current cap for at least one year and have received approval from the National Credit Union Administration.
The bill is a companion to H.R. 1188, which was introduced in the House in March.
The bankers have been turning up the heat in opposition to any type of expansion of member business lending. Most recently bankers helped to generate a record number of comment letters to NCUA on its proposal to help credit unions to expand MBL.