NAFCU Annual Conference: Matz says supplemental capital proposal this fall would complement RBC
NCUA is expected to release a proposed rule on supplemental capital this fall with an effective date that would coincide with implementation of risk-based capital in 2019, agency Chairman Debbie Matz told NAFCU’s Annual Conference attendees Thursday in Montreal.
Matz, reiterating in her speech that “This is the Year of Regulatory Relief,” said NCUA has determined that current law permits the agency to count certain forms of supplemental capital for the RBC ratio. She also said as part of modernizing risk-based capital, “I am committed to counting supplemental capital in full.”
Matz reminded that low-income credit unions can already raise and count secondary capital and that a working group assembled earlier by the agency has focused on this.
She said the working group is also discussing potential legislative and regulatory changes benefiting all credit unions interested in raising supplemental capital.
NAFCU has long urged NCUA to take steps under its current authority to allow for supplemental capital, and it is seeking legislation addressing this and other issues to ensure a workable capital regime for all credit unions. At the same time, the association continues to have serious concerns about the agency’s risk-based capital proposal and has urged its withdrawal.continue reading »