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Senators introduce NAFCU-opposed bill providing NCUA with additional vendor authority
Senators Jon Ossoff, D-Ga., Cynthia Lummis, R-Wyo., and Mark Warner, D-Va., Monday introduced S. 4698, the Improving Cybersecurity of Credit Unions Act, which would give the NCUA additional authority to examine credit unions’ third-party vendors.
NAFCU has long opposed similar legislation, including the House version of this bill introduced in March, specifically highlighting concerns about the wide authority it would give the NCUA and potential costs to credit unions.
NAFCU Vice President of Legislative Affairs Brad Thaler recently wrote to Congress on this issue noting there are tools already in place for the agency to get access to information about vendors and the agency's time and resources are "better focused on reducing regulatory burden by coordinating efforts among the financial regulators."
As previously reported in NAFCU Today, the NCUA has not been transparent on the costs and how they would use this new authority. While S. 4698 would require the NCUA to hold a budget hearing for any new expenditures, implementing such new authority for the NCUA would require significant expenditures by the agency, a direct cost to credit unions across the country who fund the NCUA budget.
The association believes the NCUA should instead focus on where their expertise lies – regulating credit unions – and working with the Federal Financial Institutions Examination Council to gain information on vendors already vetted by federal regulators.
NAFCU will continue to oppose granting this additional authority for the NCUA and will keep members up to date via NAFCU Today on relevant regulatory changes.