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Berger blasts bankers' criticism of NCUA's subordinated debt rule
In an editorial published in American Banker, NAFCU President and CEO Dan Berger pushed back against the American Bankers Association's criticism of the NCUA's new subordinated debt rule.
“For those who believe in putting people first, particularly those with less financial means and opportunity, they should be applauding the agency’s actions – not condemning them,” wrote Berger. “Regulatory efforts to advance reforms that allow credit unions to grow would directly provide more relief and financial assistance to the same communities banks have left behind year-after-year, and crisis-after-crisis.”
Despite the bankers’ baseless attacks, the NCUA board unanimously finalized – largely as proposed – the rule to permit low-income designated credit unions (LICUs), complex credit unions, and new credit unions to issue subordinated debt for purposes of regulatory capital treatment.
NAFCU fully expects the bankers’ criticism of the credit union industry to continue, and the association stands ready to defend the industry.
“While bank lobbyists and other opponents will consistently find new ways to oppose credit union growth, policymakers must reject these worn-out temper tantrums,” Berger stressed.
"The NCUA’s adoption of its subordinated debt rulemaking helps spur marketplace competition, consumer choice and the well-being of the nation’s local communities. The agency should be commended,” he concluded.
Read the full editorial in American Banker here.