In Shift, Credit Unions Could Get Access to Outside Investors

Credit unions could be allowed to issue debt to outside investors under a forthcoming proposal that‘s drawing criticism that the not-for-profit financial institutions are straying from their mission.

The National Credit Union Administration is set to issue proposed rules Thursday on subordinated debt. Details of the proposal aren’t available yet, but credit union trade groups say that the move would allow their members to better manage their balance sheets.

“Our goal is to have credit unions be safe and sound, but have flexibility to lend. That’s of course what capital flexibility does,” said Carrie Hunt, the executive vice president ...