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CUNA testifies during House hearing on CFPB

CONGRESS CUNA TESTIMONY

The burden of complying with ever-changing and ever-increasing regulatory requirements continues to create issues for credit unions and other small institutions, Doug Fecher, president/CEO of Wright-Patt CU, Fairborn, Ohio, will told members of the House Oversight and Government Reform Committee financial services subcommittee on July 24.

Fecher, who testified on behalf of the Credit Union National Association, spoke at a 10 a.m. (ET) in a hearing entitled "Credit Crunch: Is the Consumer Financial Protection Bureau (CFPB) Restricting Consumer Access to Credit?"

In prepared testimony, Fecher noted that credit unions have been battered by the volume of regulatory changes and by concerns sparked by the financial crisis. Credit unions are bracing for the next wave of rules created by the Dodd-Frank Wall Street Reform Act.

Regulatory compliance costs reduce credit unions' net income, and while these costs will not drive credit unions into immediate insolvency, they will reduce the protective cushion provided by capital, leaving credit unions less resilient during the next big financial shock, Fecher will note.

"Credit unions face a crisis of creeping complexity with respect to regulatory burden. This burden will, in my opinion, have a negative impact on credit unions' ability to extend credit to members at reasonable costs. It is not just one new law or revised regulation that challenges credit unions, but the cumulative effect of all regulatory changes," Fecher's testimony said.

To read the complete story, visit CUNA's News Now.

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