Newsroom

The Senate Banking Committee held a hearing yesterday to discuss how federal financial regulators are working to create a financial system that strengthens the financial services industry to benefit consumers, communities, and small businesses.

During the hearing, Chairman Sherrod Brown, D-Ohio, said that lawmakers “need to pass the bipartisan Improving Cybersecurity of Credit Unions Act led by Senators Ossoff, Lummis, and Warner” to give regulators the tools needed to combat growing cybersecurity risks.  

NAFCU is opposed to this bill, which would grant the NCUA additional authority to examine credit union service organizations (CUSOs) and other third-party vendors, and sent a letter to the committee in August outlining concerns. The letter noted that credit unions fund the NCUA budget and implementing such a new authority would incur additional expenditures by the agency – ultimately borne by credit unions and their 134 million members. The association reiterated these concerns, in addition to other credit union priorities Congress should address, ahead of Tuesday’s hearing.

NCUA Chairman Todd Harper testified at the hearing and shared recent steps the agency has taken to strengthen the credit union industry.

“Over the last year, the NCUA has undertaken several actions to strengthen capital standards, improve the examination process, enhance cybersecurity, protect consumers, preserve Minority Depository Institutions (MDIs), and advance diversity, equity, and inclusion,” said Harper.

Harper will also testify at the House Financial Services Committee’s oversight hearing, “Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions,” scheduled for 10 a.m. Eastern today. Ahead the hearing, NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the committee.

In his letter, Thaler highlighted:

·       NAFCU’s support of the House-passed Expanding Financial Access for Underserved Communities Act, giving credit unions a greater ability to serve localities deserted by banks;

·       the association’s opposition to granting the NCUA oversight authority over third party vendors;

·       NAFCU’s support in closing the industrial loan company loophole; 

·       the need to extend the authorities for the Central Liquidity Facility granted under the CARES Act;

·       the necessary reformation of the member business loan cap; and

·       the importance of careful implementation of Section 1033 of the Dodd-Frank Act.

NAFCU will monitor the upcoming oversight hearing and report information via NAFCU Today.