NAFCU Vice President of Legislative Affairs Brad Thaler urged leaders of the House Appropriations Committee on Tuesday to support a provision in the Financial Services and General Government appropriation’s bill that would provide for a NAFCU-backed, two-year delay of the NCUA’s risk-based capital (RBC) rule. The bill is slated for mark-up by the committee today.
This RBC-delay provision, also included in the House Financial Services Committee-passed Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841), comes from the Common Sense Capital Relief Act (H.R. 5288), which was introduced by Reps. Bill Posey, R-Fla., and Denny Heck, D-Wash., in March. NAFCU President and CEO Dan Berger met with Posey and Heck last month to thank them for their ongoing efforts to protect the industry from the adverse effects of this rule.
In his letter to Committee Chairman Rodney Frelinghuysen, R-N.J., and Ranking Member Nita Lowey, D-N.Y., Thaler explained that if this RBC rule goes into effect as written, it will have a negative impact on the industry. He pointed out that dozens of credit unions could see a downgrade in their capital levels and more than 400 institutions would see a decline in their capital cushions.
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