WASHINGTON–Treasury Secretary Janet Yellen is promising to look into two issues related to community development financial institutions (CDFIs).
Yellen, who was appearing before House Financial Services Committee as part of “The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System, largely focused her commentary on the impact the Russian-Ukraine conflict will have on our global system and the recently imposed sanctions on Russian financial institutions.
But Rep. Al Lawson (D-FL) questioned Yellen directly about the CDFI certification process, citing concerns that currently proposed changes to the CDFI Fund will make it harder for financial institutions, including credit unions, to become certified and gain access to additional capital that Congress has provided.
Lawson additionally requested Yellen and her staff investigate the current backlog for CDFI certifications and determine whether the delays required statutory relief or if there were other methods to address the issue, noted NAFCU.
‘Very Supportive’
Yellen agreed to explore the two issues, stating that Treasury is “very supportive of CDFIs and want to make sure they can become established and receive all additional funding Congress has made available. These are critical institutions in supporting the provisions of capital, especially in low-income and minority neighborhoods,” NAFCU reported.
In a statement, NAFCU VP-Legislative Affairs added, “NAFCU thanks Representative Lawson for raising these important issues on behalf of credit unions, Secretary Yellen’s recognition of concerns around the proposed changes to the CDFI Fund and certification backlog are a step in the right direction and NAFCU looks forward to reviewing the Treasury Department’s investigation into the issues.”