NCUA Board will vote on RBC2 next Thursday
The NCUA Board is slated to vote in open session Oct. 15 on its final risk-based capital rule. If approved as proposed, the rule would take effect Jan. 1, 2019.
NAFCU has consistently opposed this rulemaking and urged withdrawal. In particular, “NAFCU believes NCUA has failed to consider the true impact this rulemaking will have on the entire credit union industry,” said NAFCU President and CEO Dan Berger. He reiterated the association’s view that RBC2 is unnecessary and will only impose more regulatory burden and costs on an already extremely well-capitalized industry.
NAFCU is working in support of H.R. 2769, a bill which would require NCUA to review RBC2 and report back to Congress on the agency’s authority to issue a two-tier, risk-based-capital rule and the impact it would have on credit unions and their members.
The bill was overwhelmingly approved this month by the House Financial Services Committee in a bipartisan vote of 50-9. Its sponsors, Reps. Stephen Fincher, R-Tenn., Bill Posey, R-Fla., and Denny Heck, D-Wash., urged NCUA earlier this week to voluntarily undertake the study before moving forward on RBC2. NCUA Chairman Debbie Matz said in a letter Thursday that the agency will submit a report on RBC2 issues “shortly after” the board meeting next week.continue reading »