Credit unions across the country have expressed their concerns regarding the National Credit Union Administration's (NCUA) risk-based capital rule for credit unions. Today, the House voted to pass a bill that includes a provision to delay implementation of the rule. Credit Union National Association (CUNA) supports the measure as it reduces the impact on credit unions by pushing the effective date from January 1, 2019 to January 1, 2021.
“CUNA and credit unions have well-founded concerns about NCUA’s risk-based capital rule, primarily whether or not NCUA even has the legal authority to issue such a rule,” said CUNA President/CEO Jim Nussle. “We continue to maintain that the risk-based capital rule is a solution in search of a problem, and support Congressional efforts to delay the rule.”
The provision to delay was included in the Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841), which passed by a margin of 400-2. CUNA wrote to the Senate Banking Committee today urging leadership to consider drafting legislation that would delay the risk-based capital rule.