Credit unions support NCUA Board decision to pass RBC rule
WASHINGTON, DC (October 18, 2018) — Today Credit Union National Association (CUNA) Chief Advocacy Officer, Ryan Donovan released the following statement after the National Credit Union Administration (NCUA) board voted to approve a final risk-based capital rule, which would secure important regulatory relief for credit unions and maintain an appropriate focus on safety and soundness.
“We thank the NCUA board for passing its risk-based capital final rule, and hope Chairman McWatters and Board Member Metsger recognize there is more work to be done to ensure the risk-based capital standard credit unions are subject to is appropriate to the risk profile of the system and consistent with federal law,” said CUNA Chief Advocacy Officer Ryan Donovan. “While CUNA supports a longer delay and other substantive modifications to the rule, the proposal’s changes are important and will provide relief, and NCUA deserves credit for this targeted regulatory relief.”
The rule will delay implementation of the risk-based capital rule by one year, to Jan. 1, 2020, providing credit unions additional time to comply, and most notably, raising the threshold for risk-based capital compliance to $500 million in assets, exempting 90% of credit unions from the rule.
During his remarks regarding the RBC proposal, Board member Metsger mentioned that the agency can now turn its attention to developing a rule on alternative capital. Metsger noted that he anticipates an alternative capital rule that will have an effective date that coincides with that of RBC.
The board also approved a proposed rule that makes several amendments to Federal Credit Union Bylaws, designed to update, clarify and simplify federal credit union bylaws.
The proposed changes include:
- Incorporation of legal opinions issued by the NCUA’s Office of General Counsel into the text of the Federal Credit Union Bylaws; and
- Removal of outdated or obsolete provisions.
About CUNA
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.
