Common Sense Credit Union Capital Relief Act of 2017

Bill 115 hr 4464, also known as the Common Sense Credit Union Capital Relief Act of 2017, aims to provide regulatory relief to credit unions by allowing them to use alternative methods to calculate their risk-based capital requirements. The bill was introduced in the House of Representatives on November 30, 2017, by Representative Bill Posey of Florida.

The main purpose of the bill is to amend the Federal Credit Union Act to provide credit unions with greater flexibility in meeting their capital requirements. Specifically, the bill would allow credit unions to use the same risk-based capital standards as banks and thrifts, rather than the current standards set by the National Credit Union Administration (NCUA).

Proponents of the bill argue that this change would help credit unions better compete with banks and other financial institutions, as well as provide them with more options for managing their capital. They also argue that the current NCUA standards are overly burdensome and do not accurately reflect the risk profile of credit unions. Opponents of the bill, however, argue that it could weaken the financial stability of credit unions by allowing them to take on more risk than they can handle. They also argue that the bill could undermine the unique cooperative structure of credit unions by aligning them more closely with traditional banks. Overall, the Common Sense Credit Union Capital Relief Act of 2017 is a controversial piece of legislation that seeks to provide credit unions with greater flexibility in meeting their capital requirements. It remains to be seen whether the bill will ultimately be passed into law and what impact it will have on the credit union industry.