ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release February 23, 2001 #01-14
E-mail: [email protected]

ACB URGES NCUA TO WITHDRAW PROPOSAL TO EXPAND INCIDENTAL POWERS

Press Release Tools
	E-mail This Press Release
	Printer-Friendly Format

WASHINGTON, D.C. — America’s Community Bankers has urged the National Credit Union Administration to withdraw a proposed regulation that would allow federal credit unions to exercise bank-like powers while maintaining their exemption from paying taxes.

ACB said the NCUA exceeded its statutory authority in issuing the incidental powers proposal because it will add risk to the credit union insurance fund and to the safety and soundness of the industry.

“We strongly believe that if federal credit unions wish to compete with insured depositories by using the proposed incidental powers, they should convert to full tax-paying members of the financial services community,” ACB said in its comment letter to the NCUA.

ACB said that allowing credit unions to exercise the same powers available to national banks would permit credit unions to engage in activities that are not authorized for most banks and thrifts.

Several of the powers for national banks require extensive applications that are only granted after extensive review by the Office of the Comptroller of the Currency. The NCUA proposal contains no prior approval process.

ACB also objected to the “vague” standards the NCUA would apply in authorizing additional powers not enumerated in the proposal.

The comment letter is attached.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

-30-