Interchange battle heats up along with the summer temperatures.
The current interchange payment system works to benefit consumers, credit unions, and merchants. CUNA and the Leagues, together with other in the financial services industry, are working together to stop legislation aimed at changing interchange regulations. We strongly urge all credit unions, staff and members, to oppose S. 1838/H.R. 3881 to help keep consumers' and businesses' data safe. CUNA has launched an interchange resource page that offers many tools, talking points, and social media resources to help explain the harmful impact this legislation will have on consumers.
Credit unions opposing NCUA involvement in climate-related financial risk.
Climate-related financial risk is a factor of consideration for credit unions. However, credit unions know their operations, fields of membership, individual members, and potential risks best, certainly better than the National Credit Union Administration (NCUA), which appropriately focuses on the industry on a broad scale.
CUNA’s letter in response to the NCUA’s Request for Information (RFI) outlines opposition to any subsequent regulatory activity that would establish mandatory reporting procedures for credit unions or to otherwise prevent credit unions—directly or indirectly—from continuing to make independent business decisions as they deem most appropriate in order to serve their members.
In the letter, CUNA also recognizes NCUA’s awareness of climate risk as an area for the agency to monitor, and that the agency’s role as the federal prudential regulator and insurer of credit unions warrants a holistic understanding of potential risks to the industry which includes collecting information from credit unions regarding climate-related financial risk.
Credit unions urge CLF improvements in NCUA annual regulatory review.
Each year, the Office of General Counsel reviews one-third of the National Credit Union Administration’s regulations on a rolling basis. This year’s review includes Parts 711 – 747. In response to the NCUA 2023 regulatory review, CUNA filed this letter, providing substantive comments on a number of the parts and sections up for review, including on CUSOs, supervisory committee audits, appraisals, and the CLF (Central Liquidity Facility).
This week on the Hill.
Of note, the Senate Appropriations Committee is set to markup its version of the Financial Services and General Government (FSGG) bill Thursday. The House Appropriations Committee passed its fiscal year 2024 FSGG funding bill, which reduces funding for the Community Development Financial Institution (CDFI) Fund and Community Development Revolving Loan Fund (CDRLF). Discrepancies between the two chambers’ bills will need to be reconciled for enactment. The Senate Small Business Committee holds a markup Wednesday that includes several bills aimed at increasing access to capital, including among veterans.
Also in the Senate, the Senate Banking Committee holds a hearing Wednesday on bank mergers and the economic impact of a consolidating financial services marketplace. Regulatory burdens contribute to consolidation and continues to advocate for field of membership (FOM) reforms to allow credit unions to serve areas that have been left behind. The committee Tuesday will discuss how abusive land contracts prey on vulnerable homebuyers.
In the House, the Small Business Committee will explore a report from the Small Business Administration’s (SBA) Inspector General on pandemic-related fraud. The House Financial Services Committee also holds several hearings this week, including two subcommittee hearings related to proxy investors and a full committee hearing on environmental and social policy (ESG) in financial regulation.
Jobs Report released.
New data from the Bureau of Labor Statistics revealed 209,000 jobs were added in June, with a decrease in the unemployment rate to 3.6 percent. The June jobs report was full of mixed signals; Job growth fell to its slowest pace since 2020, and downward revisions shaved over 100,000 jobs from prior estimates. Wage growth held firm at 0.4 percent, which will worry Fed officials. A rate hike later this month is almost assured, and at least one additional hike after that is highly likely.
Cyber Incident Notification rule webinar.
Credit unions can get valuable information on the National Credit Union Administration’s new cyber incident notifications rule on an Aug. 2 webinar hosted by the agency. (Online registration and details about the presentation will be available soon.)
The new rule, scheduled to go into effect on Sept. 1, requires a federally insured credit union to notify the NCUA as soon as possible, within 72 hours, after it reasonably believes that a reportable cyber incident has occurred.
The webinar will be archived on the NCUA’s Learning Management System following the live event. A Learning Management System account is required to view the archived webinar, and it also provides access to NCUA’s other training and educational materials. By subscribing to NCUA Express Messages, you can receive announcements about webinars and other NCUA activities and resources.
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