Removing Barriers Blog

Letter sent to Crapo and Brown re: PCA Flexibility
Posted July 26, 2020 by CUNA Advocacy

Late last week, CUNA wrote to Chairman Crapo and Ranking Member Brown as follow-up to the recent letter outlining credit union priorities in the upcoming COVID recovery legislation.

In addition to the issues raised in the previous letter, we raised the issue for the NCUA to have additional authority to adjust capital requirements for credit unions impacted by crisis. 

"Credit union capital requirements are different than bank requirements in several respects, including that only retained earnings count as Tier I capital for credit unions and thresholds for credit union capital levels are hardwired into statute.  These limitations restrict NCUA in its ability to provide accommodations to otherwise healthy credit unions impacted by natural disaster, pandemic and other crises."

The CARES Act included capital flexibility for other insured depository institutions to weather this crisis. It is important that Congress take steps to ensure that the credit union regulator has the tools it needs to help credit unions impacted by the crisis continue to serve their members. 

Earlier in the week, CUNA wrote to Congressional leadership outlining a number of issues that should be including in the next phase of COVID-related relief legislation.