WASHINGTON—CUNA is expressing concerns over what it is calling NCUA’s “statutory inflexibility” regarding the influx of deposits to CUs.
Separately, CUNA’s Jim Nussle and Ryan Donovan were named as top lobbyists by The Hill.
In a letter to the Senate Banking, Housing, and Urban Affairs Committee, sent in conjunction with a hearing entitled, “CARES Act Oversight of Treasury and the Federal Reserve: Building a Resilient Economy,” CUNA said the stimulus checks sent to Americans as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act have led to declines in CU liquidity ratios, “casting a light on the NCUA’s statutory inflexibility to provide accommodations to credit unions that saw an influx of deposits.”
“As Congress considers additional pandemic recovery legislation, we encourage you to include language that allows NCUA, on a case-by case basis, to provide forbearance from Prompt Corrective Action (PCA) for credit unions impacted by the pandemic and which were otherwise healthy prior to the onset of the crisis,” CUNA stated. “While credit unions entered the crisis extremely well-capitalized, the impact of the ensuing economic crisis has and will put stress on capital and, given credit unions’ limited ability to raise capital, the regulator could use additional tools.”
Recommendations Offered
CUNA also recommended Congress lift the member business loan cap for one year following a national emergency, and encouraged Congress to expand credit unions’ field of membership.
The letter also reiterated credit union concerns with the proposed IRS reporting requirements that could still be included in the Senate’s work on the Build Back Better Act.
“This proposal represents an unprecedented overreach of the federal government into the everyday lives of virtually every American. And we are concerned that it could have a profoundly negative impact on the unbanked, the underbanked, communities of color, immigrants, and low- and moderate-income households to the extent that it would discourage financially vulnerable individuals from choosing to access mainstream financial services,” CUNA stated.
Top Lobbyists
Meanwhile, the Washington publication The Hill has named CUNA President/CEO Jim Nussle and Chief Advocacy Officer Ryan Donovan among the “Top Lobbyists” for 2021. The honor recognizes people who wielded their connections and knowledge most effectively for their clients and organizations, CUNA said.
“It’s been a busy year for the CUNA/League system, and together, we’ve seen great success,” said Jim Nussle. “This recognition speaks to the collective strength of the credit union movement. We are honored to represent America’s credit unions here in Washington.”
The trade group noted the honor is the latest critical acclaim for CUNA’s advocacy. Earlier this year, The National Institute for Lobbying and Ethics (NILE) recognized Donovan as one of the top lobbyists of 2021.
“Accolades like this remind us that credit union advocacy efforts reverberate through our nation’s capital,” said Donovan. “This year has been one for the books and we attribute this honor to the strength of our fierce, bold, 360-degree advocacy.”
Nussle has made The Hill’s list since he joined the association in 2014, and Donovan has received the distinction for the last four years.