Friday, August 21, 2009

Crawl Before You Walk

Speaking before the National Associations of State Credit Union Supervisors, NCUA Board Member Gigi Hyland suggested credit unions “should crawl before they walk” when increasing their capacity to make business loans, and that Congress should consider raising the current cap on member business loans of 12.25 percent of assets “in stages” for safety and soundness reasons.

Upon hearing about this remark, CUNA President and CEO Dan Mica blew a gasket.

“What Board Member Hyland suggests is addressed in the Kanjorski-Royce bill by raising the business lending cap to only 25 percent. We would like to see the cap taken off of member business lending by credit unions,” Mica stated.

I guess Dan Mica equates going from a business loan cap of 12.25 percent of assets to 25 percent of assets as crawling.

I beg to differ. Such an expansion in business lending capacity is a giant leap.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.