CUNA, World Council, international CU organizations call for tailored regulations
From left, Canadian Credit Union Association President/CEO Martha Durdin, Customer Owned Banking Association (Australia) President/CEO Mike Lawrence, World Council Senior Vice President and Counsel Michael Edwards and CUNA Chief Advocacy Officer Ryan Donovan.
CUNA and other international credit union organizations joined a World Council of Credit Unions-led effort Friday to urge the Basel Committee on Banking Supervision to endorse regulatory proportionality. This is a practice that allows national and regional financial regulators to prescribe less burdensome compliance standards to credit unions than those required by the Basel III framework and other international standards.
Based in Switzerland, the Basel Committee is primary global standard setter for the prudential regulation of banks. Basel III is the global regulatory framework adopted by the committee in response to the financial crisis of 2007-2009, aiming to strengthen regulation, supervision and risk management of banks.
“Even though the Basel Committee’s mandate and focus is on international banks, the committee’s work impacts credit unions across the globe, including the United States,” said CUNA Chief Advocacy Officer Ryan Donovan, who attended the meeting in Basel, Switzerland. “When national-level regulators take up Basel standards and apply them to credit unions, it means that rules designed for complex international banks get applied to small domestically focused cooperatives, creating one-size-fits-all problems with which credit unions in the United States are all too familiar.
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