FOR IMMEDIATE RELEASE
Patrick Keefe – CUNA Communications; (202) 508-6765; email@example.com
Step in the right direction; looking forward to working with agency.
MADISON, Wis. (01/10/2013) - Raising the threshold for the definition of “small entity” is a step in the right direction, and we look forward to monitoring the effectiveness of this approach for credit unions. In our comments to the agency, we suggested a threshold of $50 million for agency assistance and access – and a higher level for purposes of regulatory relief. We commend the agency for taking the action today, which will benefit many more small credit unions. CUNA continually looks for ways to assist small credit unions and we anticipate working with NCUA as it implements this new threshold.
(NOTE: Additionally in its comment letter, CUNA recommended that the agency do away with the “complexity index” as a method for determining the
threshold for “small entity.” In the comment letter, CUNA demonstrated that this method is not a reliable indicator of risk. Further, CUNA has expressed concern that this method can or will be used in a variety of ways that could, ultimately, lead to negative or unintended results for credit unions. Those
include reductions in credit union flexibility, increases in risk profiles and reductions in member service provisions.)