From The Credit Union Times;
NCUA Chairman Debbie Matz has told the Financial Accounting Standards Board that the group’s proposed credit loss accounting standard present safety and soundness concerns for small and medium sized credit unions. Read more
Matz expressed her concerns about the proposal, which industry leaders estimate could double or even triple current allowances for loan and lease losses, in a supplemental letter sent Friday following an interagency opinion that included the NCUA, FDIC, Federal Reserve Board and the Office of the Comptroller of the Currency.
“I urge the FASB to consider the unintended consequences of enacting financial reporting rules that may unduly impact the financial performance of small- and medium-sized credit unions and discourage these institutions from making loans to low-income borrowers, particularly during times of economic distress,” Matz wrote. “Since credit unions were the only federally insured financial institutions to increase lending throughout the recent economic downturn, discouraging credit union lending would negatively impact consumers going forward.”