Simpson: Credit Union Leaders Feel Heavy Regulatory Burden Across Industry
By CU Today Staff —
WASHINGTON—Credit union CEOs across the country are feeling the weight of operating in an increasingly complex regulatory environment and are eager to see supervision become less politicized, according to America's Credit Unions President and CEO Scott Simpson.
Speaking during Monday's media call, Simpson said extensive recent travel and meetings with credit union leaders nationwide have revealed a common theme: while each institution faces unique challenges, the burden of running a highly regulated financial institution is universal.
"The pressure of running this depository financial institution, this highly regulated entity in our country, is constantly a weight that they carry, regardless of the size of the institution," Simpson said. "More than anything, there's this intense desire to see the regulatory space continue to be depoliticized."
Simpson said he has also been encouraged by the industry's response to economic uncertainty, describing credit unions as well-positioned to meet member needs.
"In seasons of economic uncertainty, it's always an opportunity for the credit union model to shine, and I can see that happening around the country," he said.
On the regulatory front, America's Credit Unions Head of Regulatory Advocacy James Akin highlighted two recent developments the organization believes will benefit credit unions. Akin pointed to new guidance issued Friday by FinCEN under Section 314(b) of the USA PATRIOT Act that expands the safe harbor for financial institutions to share information related to suspected fraud.
"We think this will be helpful for credit unions to be able to talk more openly with one another about what they're seeing in their regions," Akin said, adding that the guidance should support more coordinated efforts to combat fraud across institutions.
Akin also welcomed the NCUA's final records preservation rule, which appeared Monday on public inspection. The rule was supported by America's Credit Unions as part of the agency's deregulation initiative and is expected to reduce record-retention requirements, particularly for smaller credit unions.
Meanwhile, ACU Senior Vice President of Advocacy Greg Mesack said Congress is expected to revisit housing legislation that has been moving between the House and Senate, although final language has not yet been released. He said some version of an investor housing ban is expected to remain in the bill, while other provisions continue to be negotiated.
"We're going to very carefully watch amendments to see what's proposed and what's not proposed," Mesack said. "Then we're going to watch to see if there's anything that's good for credit unions or bad for credit unions."
Mesack also said America's Credit Unions continues to press for Senate action on NCUA board nominee John Crews, noting the organization recently urged the Senate Banking Committee to move the nomination and has met with every committee office on the issue.
On Capitol Hill, the House is back in members' districts this week while the Senate remains in session for a shortened legislative week ahead of the Juneteenth holiday. America's Credit Unions is also monitoring several state elections Tuesday, including primary contests in Oklahoma and Washington, D.C., a Republican Senate primary runoff in Alabama, and runoff elections in Georgia.
Originally reported by CU Today.