CUNA plans to work across the credit union industry to ensure the NCUA receives feedback on its alternative capital Advance Notice of Proposed Rulemaking (ANPR) put forth Thursday. The ANPR seeks information on a broad range of alternative capital topics.
“We thank the NCUA for taking the next step toward allowing credit unions to use alternative forms of capital for purposes of complying with the risk-based capital rule,” said Jim Nussle, CUNA president/CEO. “We look forward to working with the leagues, credit unions and our Examination and Supervision subcommittee to make sure the agency gets the feedback it needs to continue to move forward.
“It is vital that credit union stakeholders carefully consider the questions put forth by NCUA, and to submit their comments on the matter during the comment period,” Nussle added.
According to the NCUA, alternative capital includes two separate categories: secondary capital and supplemental capital.
Secondary capital is currently permissible only for low-income designated credit unions to issue and to be counted toward both the net worth ratio and the risk-based net worth requirement. The board is considering changes to this.
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