CUNA/League System significantly impacted final risk-based capital rule
WASHINGTON, DC (October 15, 2015) — The CUNA/League System significantly impacted the final risk-based capital rule voted on today by the NCUA. The System sought removal of the capital adequacy provisions, reduction in a number of the risk weights and further explanation of the conditions under which goodwill could be included in the risk-based capital ratio.
“Make no mistake – CUNA firmly believes the NCUA’s risk-based capital rule is a solution in search of a problem,” said CUNA president/CEO Jim Nussle. “Since the initial proposal 20 months ago, CUNA and the Leagues worked together to execute one of the most coordinated and successful advocacy campaigns in the past 15 years to ensure we significantly impacted the final rule to get the best possible results for credit unions. Without our advocacy efforts, there is absolutely no question that the final rule would have been much worse for credit unions. We thank the agency’s intention to have a supplemental capital rule in effect by the effective date of this rule to allow supplemental capital for purposes of risk-based capital compliance.”
Nussle also weighed in on the capital adequacy requirement and a study of the rule:
“We’re disappointed NCUA retained the capital adequacy requirement, and will be pushing for examiner guidance and training to place some boundaries around this wildcard capital requirement. This final rule remains deeply unpopular and CUNA is disappointed the NCUA didn’t release a study on its rulemaking approach, impact and cost of the rule to lawmakers, stakeholders and credit unions before today’s vote. We encourage the agency to disclose this information.”
The CUNA/League System worked to ensure significant changes through:
- Thousands of credit union employees and board members submitting comment letters to NCUA in opposition to the proposal.
- 375 Members of Congress and dozens of other stakeholders expressing concern for the proposal.
- Credit unions attending town hall meetings organized by the NCUA to voice their concerns face to face.
- CUNA and League leaders traveling to Alexandria several times to make our case before the Board members and NCUA staff.
- Leagues raising this issue regularly during their Hike the Hill meetings.
- CUNA commissioning a legal opinion focusing on whether NCUA had the statutory authority to implement the rule as it was proposed, a document which became the key focus of debate when the NCUA Board took up the revised proposal (RBC2) in January 2015.
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.
