CU*Answers releases first article on revisions to proposed Risk Based Capital Rule
GRAND RAPIDS, MI (February 4, 2015) — CU*Answers, a 100% credit union-owned cooperative CUSO, released its first of three articles outlining the reasons it believes the second version of the proposed Risk Based Capital rule by the NCUA should not become regulation. The series will first concentrate on a holistic view of why the rule is flawed, followed by a legal perspective. The goal of the series is not only to inform credit unions and their members of the flaws of the rule, but to call them to action by submitting their own comments to the NCUA.
“The manner in which the NCUA presented the RBC2 proposal at the board meeting and in its commentary is that they “listened” to the industry and made the changes that were asked for,” said Randy Karnes, CU*Answers CEO. “However, it’s our view that they focused on the minutia of the regulation as a way to sway industry leaders away from a holistic view of the regulation.” Karnes continued by stating the regulation undermines the cooperative nature of credit union charters and continues to compare CUs to their banking competitors with a complete misunderstanding of what credit unions were created to accomplish. He added that by increasing the capital requirements on credit unions it will make it easier for the NCUA to put them in Prompt Corrective Action (PCA) and to levy an unfair tax against members.
During the last comment period for RBC, the NCUA received over 2,000 comments. CU*Answers is encouraging the industry to double the number of comments this time around and to inform the NCUA that changing details is not enough; the rule as a whole is flawed and should not be adopted at all. To assist credit unions with commenting on the proposal, CU*Answers has created a comment engine for credit union CEOs, Boards, staff, and members to easily submit a comment to the NCUA on the flaws of the regulation.
The three-part series and the comment engine are available from the website of the audit and compliance division of CU*Answers, AuditLink. http://auditlink.cuanswers.com/
About CU*Answers, Inc.
CU*Answers offers expertise in implementing technical solutions to operational needs, and is a leader in helping credit unions form strategic alliances and partnerships. CU*Answers provides a wide variety of services for credit unions including its flagship CU*BASE® processing system (online and in-house) and Internet development services featuring It’s Me 247 online and mobile banking. Additional services include web development, network design and security, and image check processing. Founded 40+ years ago, CU*Answers is a 100% credit union-owned cooperative CUSO providing services to credit unions representing over 1.7 million members and $15.7 billion in credit union assets. For more information, visit www.cuanswers.com.