The National Credit Union Administration’s newest board member and chairman John Crews is settling into the job, and America’s Credit Unions (ACU) has some recommendations on what the NCUA should be prioritizing for the near future. The advocacy group published a letter to the chairman detailing seven areas the NCUA should be focusing its efforts.
First among those listed is “Capital Reform and Regulatory Capital Parity.” Per ACU, due to credit unions’ reliance on retained earnings, capital requirements should reflect “actual risk.” Pointing to the Community Bank decision to lower its Leverage Ratio from 9 to 8 percent, ACU similarly advised NCUA to drop its Complex Credit Union Leverage Ratio (CCULR) from 9 to 8 percent. They also recommended modernizing subordinated debt and fixed-dollar thresholds for capital rules, ensuring they are revisited from time to time to stay current with inflation and industry growth.
Second, ACU set its sights on examinations and the CAMELS system, seeking to provide regulatory relief for small credit unions while still ensuring operational soundness and safety. They applauded recent improvements in the area and encouraged further application of a risk-based approach to supervision that will provide needed relief to credit unions, while also allowing for healthy credit unions to go longer between examinations.
Third, America’s Credit Unions wants Crews and the NCUA to loosen statutory barriers to field of membership expansion for federal credit unions. They should follow the example of state charters which are providing credit unions with greater opportunities for diversifying membership. They also urged NCUA to continue seeking to improve and streamline the process for starting new credit union charters, and easing the early capital and liquidity hurdles that new charters often face.
Fourth, the letter addresses technology, FinTech investment, and specifically identifies stablecoin as an area of attention. With the GENIUS Act opening the doors for stablecoin, ACU urged NCUA to provide more flexibility to credit unions seeking to invest in the burgeoning technology.
Fifth, BSA efforts are important, but the filings require a great deal of resources. ACU encouraged NCUA to carry through proposed changes to anti-money laundering/countering the financing of terrorism (AML/CFT), which would give more flexibility to credit unions in how they manage their programs. The system needs modernization, they argue, and efforts should be made to streamline reporting.
Sixth, ACU encouraged Crews to continue the measures taken by his predecessor Hauptman to reduce agency costs and improve efficiency. The budget dropped nearly $80 million dollars from 2025 to 2026, and credit union operating fees dropped with it. America’s Credit Unions identified the reorganization going on as an opportunity to create a lean agency that focuses more on risk-based oversight.
Lastly, the continuation of the NCUA’s Deregulation Project is of keen interest to America’s Credit Unions, who are highly supportive of the measures already taken. They write, “We encourage the NCUA to complete the pending rulemakings and move beyond the initial changes to address more complicated regulations that limit credit unions’ flexibility or impose unnecessary costs. We also encourage the agency to continue working with the industry to develop updates that provide meaningful and lasting relief.”
To read the letter in full, visit the America’s Credit Unions website.
