Royce: What steps can Congress take on RBC?

NAFCU witness David Clendaniel, president and CEO of Dover Federal Credit Union in Dover, Del., told lawmakers Tuesday that NCUA’s proposed rule on risk-based capital should be reviewed for its full impact before it is implemented.

Clendaniel, testifying during a hearing by the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, was asked by Rep. Ed Royce, R-Calif., what next steps Congress should take on the NCUA proposal. He responded that a number of things would help, but one thing Congress could do is require NCUA to conduct additional study on the issue before moving forward with a final rule. Similar action is proposed for community banks’ Basel requirements under H.R. 4042, which the subcommittee is reviewing.

“I think the one thing that could be done,” Clendaniel replied, “… is to include the NCUA proposal in H.R. 4042, and do a ‘stop and study’ to make sure we know what full the impact of the proposal is and what’s also the right proposal for credit unions and for their members.”

Royce invited the NAFCU witness to “put a full proposal forward” on how Congress could help.

In his testimony, Clendaniel said “enough is enough” as he detailed the numerous new, burdensome rules coming from NCUA and CFPB that are squeezing the resources credit unions have to devote to serving members.

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