As the National Credit Union Administration prepares to vote tomorrow on a proposal that would substantially loosen credit unions’ field of membership limitations, ABA urged NCUA to stand up the credit union lobby and follow the law.
ABA expressed concern about NCUA Vice Chairman Rick Metsger’s description of the anticipated proposal as a “game changer,” which ABA’s Rob Nichols called “especially troubling” because “[t]he credit union lobby has brazenly requested that NCUA gut limitations established by
Congress to make credit union membership meaningful… We are very concerned tomorrow’s proposal will enable credit unions, especially the largest credit unions, to move even further away from the narrow common bonds that define their missions.”
Nichols called on NCUA to “demonstrate that it is not a cheerleader for the industry it is charged with supervising,” adding that “[c]hanges that exceed NCUA’s statutory authority or that alter the competitive dynamic between banks and credit unions will be vigorously opposed, using all available tools.”
