Matz’s comment undermines integrity of rulemaking process

by Credit Union Watch

by: Keith Leggett

Despite being in the middle of the risk-based capital proposal comment period, National Credit Union Administration (NCUA) Chairman Debbie Matz announced on March 9 that the agency will issue later this year a proposal to count supplemental capital in full in its risk-based capital numerator.

This announcement seems to undermine the rulemaking process.

NCUA put out for a 90 day comment period its proposed rule with comments due by April 27.

As part of the risk-based capital proposal, the NCUA Board requested comments to several questions about supplemental capital, including “[s]hould additional supplemental forms of capital be included in the risk-based capital ratio numerator and how would including such capital protect the NCUSIF from losses?”

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