Credit unions oppose lifting thifts' lending limit

WASHINGTON, June 21 (Reuters) - Credit unions expressed opposition on Wednesday to a congressional move that would give its thrift competitors freer ability to lend to businesses while keeping the nonprofits' lending authority unchanged at a lower level.

The move is part of informal compromise procedures over finalizing legislation that would ease outdated and redundant regulations on financial institutions.

The Credit Union National Association, a trade group for about 8,900 credit unions with 89 million members, said it opposes the offer which would eliminate the restriction barring thrifts from lending more than 20 percent of their assets to businesses.

The limit for credit unions currently stands at 12.23 percent of assets.

The compromise offer was made by Rep. Michael Oxley, a Ohio Republican who chairs the House Financial Services Committee, and the panel's top democrat, Massachusetts Rep. Barney Frank.

In a letter dated June 20, CUNA urged key members of the Senate Banking Committee -- which is in the midst of reconciling differences between the House and Senate versions of the Regulatory Relief bill -- to reject the offer, calling it "unacceptable."...for more of the story from Reuters