Matz promises to be responsive to Congress on RBC2
The National Credit Union Administration will provide an analysis of its revised risk-based capital proposal (RBC2) shortly after the final rule is considered by the board on Oct. 15. NCUA Chair Debbie Matz, in a letter, sent Thursday, was in response to a letter sent this week from Reps. Stephen Fincher (R-Tenn.), Denny Heck (D-Wash.) and Bill Posey (R-Fla.).
However, the legislators asked Matz to provide the analysis to Congress prior to the board finalizing the rule.
Fincher, Heck and Posey sponsored the Risk-Based Capital Study Act (H.R. 2769), which would delay RBC2 until the agency studied the effects of the proposal on credit unions and reported to Congress. The bill passed the House Financial Services Committee last week 50-9.
The bill would require the NCUA to report to Congress on four issues: an analysis of the legal authority to require a two-tiered risk-based capital system; a comparison of bank and credit union risk weights; a discussion of the rationale for each of the risk weights; and an overview of how to proposed rule would apply to credit union capital buffers.continue reading »