NCUA to consider RBC proposal next week
The NCUA Board during its meeting next week will consider a proposed rule related to risk-based capital (RBC). Though details on this proposal won’t be released until Thursday’s meeting, NAFCU has long supported and led efforts to delay the NCUA’s 2015 RBC rule and this year initiated congressional action to obtain a delay for credit unions so that the agency could reconsider the rule in light of changes to bank capital rules contained in S. 2155.
As a result of NAFCU’s advocacy efforts on Capitol Hill, a provision to delay the NCUA’s current RBC rule by two years has passed the House three times. The provision 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 to thank them for their ongoing efforts to protect the industry from the adverse effects of this rule.
NAFCU supports an appropriate RBC system for credit unions, but has urged the most recent RBC rule be modified or effective date delayed since the rule’s passage.
The NCUA Board currently has only two of its three seats filled, which means both Chairman J. Mark McWatters and Member Rick Metsger will have to vote in support of the RBC proposal for it to pass.
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