WASHINGTON (11/14/08)--Out of agreement that the current system of capital standards for credit unions needs reform--compounded by the current economic crisis--the Credit Union National Association (CUNA) and the National Association of Federal Credit Unions (NAFCU) have issued a joint statement declaring they will work together "for change in capital standards applicable to credit unions." NCUA Board Chairman Michael E. Fryzel asked both trade groups to determine between them one method to pursue in addressing credit union capital--risk-based (PCA reform), or supplemental capital. The joint statement, in response to Fryzel's request, was sent to him yesterday. In the statement, the two trade associations acknowledge they have different areas of emphasis on the issue of capital standards. However, they note two objectives they share:
* A system based primarily on risk-based capital standards; and * Support for a system giving credit unions access to supplemental capital--in addition to retained earnings, now the only source of capital for most credit unions.
Use the link below to download the complete text of the CUNA/NAFCU statement.