Press

ALEXANDRIA, VA (Sept. 29, 2014) – National Credit Union Administration Board Vice Chairman Rick Metsger today praised Chairman Debbie Matz for her leadership and willingness to consider structural changes in the risk-based capital proposed rule, even if these structural changes resulted in an additional comment period. Metsger’s comments follow:

“As I have often said, I believe interest rate risk is important and must be addressed in the risk-based capital rule, but it should be addressed separately from credit risk. Weighting credit risk and interest rate risk with a single numerical value created conflicts that ultimately made it difficult to accurately weigh the risk of either.

“I am pleased we appear to be moving in the direction of separating interest rate risk and credit risk and that structural change alone is sufficient for me to believe an additional comment period would be appropriate.

“While an amended proposed rule has not been drafted, I believe that when people do review it, they will conclude that we have both listened to—and heard—the comments that were submitted during the initial comment period. Those who weighed in thoughtfully on the original proposal will see the agency has been responsive to fact-based analysis.”