Rep. Pete King, R-N.Y., and Brad Sherman, D-Calif., reintroduced legislation that would permit the NCUA to allow credit unions to accept additional forms of capital.
Michigan Republican Reps. Fred Upton, David Camp, Dan Benishek, and Candice Miller are original cosponsors on the bill.
Supplemental capital would allow credit unions to raise capital from sources other than retained earnings while maintaining the one-member, one-vote foundation of credit union ownership. Allowing credit unions to raise capital in a way other than retained earnings would improve credit unions’ safety and soundness and reduce risk to the National Credit Union Share Insurance Fund.
"Gaining access to supplemental capital is important for helping not-for-profit credit unions stay strong as they accommodate robust member deposit growth," MCUL & Affiliates CEO David Adams said. "The MCUL looks forward to helping to secure this important power with this Congress."
The bill is similar to a bill that was introduced in the last the House, which gained 45 cosponsors.