NAFCU’s RBC-delay provision advances out of committee

The House Financial Services Committee yesterday advanced out of committee a NAFCU-sought provision to delay the implementation of NCUA’s risk based capital (RBC) rule by two years that is housed in the Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841). NAFCU has long advocated for a repeal or delay of the rule, and the association’s efforts proved instrumental in getting the language added to H.R. 5841.

The legislation, introduced by Rep. Robert Pittenger, R-N.C., deals with the Committee on Foreign Investment in the United States (CFIUS) but has language in Title VII that would delay the effective date of the RBC rule to Jan. 1, 2021. The language included in 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 week to thank them for their ongoing efforts to protect the industry from the adverse effects of this rule.

Responding to an attack against the provision from the American Bankers Association, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt sent an email to the House Financial Services Committee to set the record straight.

 

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