NAFCU Regulatory Affairs Counsel PJ Hoffman and member credit union representatives attended an NCUA listening session with agency board members and staff about supervision and regulation, including the agency’s risk-based capital proposal, in Chicago on Thursday.
During the session, NCUA Board Chairman Debbie Matz reiterated that any final rule would have a longer implementation period than the proposed 18 months.
The mood at the listening session was more contentious than the previous session, and at least four credit unions brought up the possibility of a second comment period for the proposal. Matz said the agency would offer one if the Administrative Procedure Act required it due to a change in the proposed rule’s intent – however, she said that was unlikely. Matz also said NCUA is reviewing the proposed risk weights. NCUA does not intend for examiners to make decisions about the proposed rule’s individual minimum capital requirement, she added.
Matz also fielded questions on interest-rate risk. She said only the largest credit unions with the highest risk will be the agency’s focus.
NCUA has indicated the final rule is not likely to be approved by the end of the year, and that significant changes will be made before then.continue reading »