NCUA to CUNA: Changes could come for final RBC rule
National Credit Union Administration Chairman Debbie Matz has assured the Credit Union National Association that key changes to the agency’s risk-based capital (RBC) proposal are not out of the question prior to the rule becoming final.
She also clearly stated that the capital proposal is the “last significant safety and soundness” rulemaking she intends to initiate at the agency. Her term ends April 10, 2015.
Regarding the RBC plan, proposed at the agency’s January open board meeting, Matz wrote, “Just as NCUA incorporated significant changes to our final rules on troubled debt restructurings, loan participations and derivatives…I assure you NCUA will do so, as appropriate, on this critically important rule.” Her remarks were in response to a joint letter from CUNA President/CEO Bill Cheney and National Association of Federal Credit Union President Dan Berger that urged a longer RBC comment period than the 90 days allowed ( News Now March 3).
CUNA’s primary objective with the RBC proposal is to achieve a vastly improved regulatory outcome: If the NCUA board will not withdraw the proposal, then CUNA argues broad changes must be included in the final.
CUNA has warned that the RBC plan, as proposed, could affect the core operations of most, if not all, credit unions with assets over $50 million, despite NCUA analysis that says fewer than 200 credit unions will be impacted.continue reading »