Credit Union Investment Authority Act

Key Points

• This bill would let federal credit unions put their money into a wider variety of investments. Right now, these institutions are limited in where they can invest the money they hold for their members.
• Credit unions would be allowed to buy corporate bonds and other types of debt from private companies. To keep things safe, they would not be allowed to put more than 10 percent of their capital into any single company.
• The plan also allows credit unions to invest in asset-backed securities. These are financial products backed by bundles of loans like car payments or credit card debt.
• Government regulators would be required to set safety rules for these new investments within one year. They would check the credit quality of the investments to make sure credit unions are not taking on too much risk.
• The goal is to help credit unions earn more money on their investments. If successful, this could lead to better interest rates for members or more money available for local loans.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.