NCUA Media Advisory

Matz Calls for Lifting of Statutory Member Business Lending Cap

Alexandria, Va. November 24, 2009 -- National Credit Union Administration (NCUA) Chairman Debbie Matz urged the Department of Treasury to support increasing or eliminating the statutory cap on credit union member business lending, and allow NCUA to establish the regulatory parameters.

“I believe any lending limitations should be regulatory, not statutory. NCUA is best positioned to set requirements and maintain limits on member business lending, utilizing our direct supervisory knowledge and application of firm safety and soundness standards,” Chairman Matz stated in a November 24 letter to Treasury Counselor Gene Sperling. The correspondence was in response to a request from Sperling for additional policy suggestions following last week’s Small Business Financing Forum, hosted by Treasury and the Small Business Administration and attended by Chairman Matz.

“Historically, credit unions have been successful at making member business loans,” Chairman Matz noted. “NCUA supports a proper balance of serving business lending needs with a prudent regulatory framework to protect safety of the institutions and of the National Credit Union Share Insurance Fund. NCUA encourages the Department of Treasury and the Small Business Administration to support legislative and regulatory enhancements that will empower well-managed credit unions to make more business loans to members who need them. This will in turn help achieve your over-arching goals to create jobs and grow the economy. ”

Click here to view letter