Credit Union National Association (CUNA) President/CEO, Jim Nussle released the following statement after the National Credit Union Administration (NCUA) issued a proposed rule to delay implementation of its risk-based capital rule by one year at its Thursday meeting.
“NCUA’s proposal to delay implementation of its risk-based capital rule by one year is a step in the right direction, but CUNA maintains the regulation is a solution in search of a problem. Credit unions have expressed their well-founded concerns regarding NCUA’s risk-based capital rule, and CUNA will continue our work to ensure these concerns are heard."
CUNA supports delaying the rule, but has pushed for a two-year delay through various pieces of legislation.
The rule is currently scheduled to become effective Jan. 1, 2019. NCUA’s proposal would change it to Jan. 1, 2020. CUNA-backed legislation, including the JOBS and Investor Confidence Act (S. 488) and Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841) would delay implementation to Jan. 1, 2021. Both bills have passed the House.