Even after three discussion sessions–each running three hours or longer–credit unions werenot “talked out” about their concerns regarding the National Credit Union Administration’s risk-based capital proposal Thursday. And that energy and engagement, says Credit Union National Association Deputy General Counsel Mary Dunn, is what is needed going forward to ensure revisions the NCUA is contemplating will be significant enough to bring the kind of improvements credit unions need in a final regulation.
At the agency’s final Listening Session of the year, held here from 1-4 p.m. (ET) Thursday, credit unions of all sizes continued to underscore that the RBC plan as written is seriously flawed and unworkable. NCUA Chair Debbie Matz continued to assure that there will be numerous changes to the proposal before a rule is made final.
She also stated, “The bottom line is, our goal is not to have a consensus. Our goal isn’t to have everybody here think it’s the best rule they’ve ever seen. Our goal is safety and soundness.”
The NCUA has pledged to add time to the proposed 18-month implementation period and to adjust risk weights, especially in the areas of mortgages, member business loans, investments, credit union service organizations, and corporates credit unions.continue reading »