The National Credit Union Administration board, in a move likely to hasten renewed conflict with banks, seems poised to fast-track measures that would give credit unions more alternative capital options.
NCUA’s regulatory reform task force had initially classified alternative capital as a second-tier priority, meaning it might have taken two years for the agency to address it. But the agency's two-member board appears ready to expedite the issue. It approved a report Thursday calling for action on the issue by May.
Alternative capital is one of many issues drawing the ire of bankers.
Allowing credit unions to pursue alternative capital would be a nonstarter for banks, industry experts said.
“There are people that would look at capital as kind of the Holy Grail,” Peter Duffy, a managing director at Sandler O’Neill, said in an interview Monday. “Capital touches everything: earnings, growth, safety and soundness, ability to do mergers and acquisitions.”
Read more in American Banker.