NASCUS PRESIDENT & CEO LUCY ITO ON SUBORDINATED DEBT BEING CONSIDERED AT THE JANUARY NCUA BOARD MEETING

January 16, 2020

NASCUS PRESIDENT & CEO LUCY ITO ON SUBORDINATED DEBT BEING CONSIDERED AT THE JANUARY NCUA BOARD MEETING

ARLINGTON, Va. – Today, the NCUA Board announced that subordinated debt is one of the matters to be considered at its January meeting. The meeting will be held Thursday, January 23 at 10 a.m. Eastern at NCUA headquarters in Alexandria, Virginia.

NASCUS President and CEO Lucy Ito issued the following statements in response to today’s agenda announcement.

“We are pleased that NCUA is moving forward on this important issue. NASCUS has long been a proponent of subordinated debt as a tool for well-managed credit unions to meet capital requirements and to add another line of defense to protect the National Credit Union Share Insurance Fund. Given the complexity, and importance of this issue, we urge the Board to consider an extended comment period of 120 days. An extended period would give NCUA appropriate time to consult with state regulators and all stakeholders adequate time to review and consider the possible impacts of what promises to be complex and historically notable rule-making that may have ramifications for other rules including Prompt Corrective Action, Risk-Based Capital, and investments authority—just to name a few.  Such a complex and critical rule deserves due deliberation.”

Information Contact:

Shelton Roulhac, Vice President, Communications, sroulhac@nascus.org  or (703) 528-5974

NASCUS is the national association that advocates for a strong and healthy state credit union system, and whose members include state regulatory agencies, credit unions, credit union leagues, and organizations that support the state credit union system.