This week: NAFCU advocating RBC delay to NCUA, Senate; NFIP extension likely

NAFCU this week will continue leading advocacy efforts to delay the NCUA’s risk-based capital (RBC) rule as the agency considers a proposed rule to delay it by one year. NAFCU supports an appropriate RBC system for credit unions, but has urged the most recent RBC rule be modified or effective date delayed due to the negative impact it could have on credit unions.

As a result of NAFCU’s advocacy on Capitol Hill, a provision to delay the NCUA’s current RBC rule by two years has passed the House three times. Here is a rundown of the existing opportunities to delay the NCUA’s RBC rule:

• NCUA action: On the NCUA Board’s agenda this week is a proposed rule related to RBC. NCUA Chairman J. Mark McWatters, in a letter last week to Reps. Bill Posey, R-Fla., and Denny Heck, D-Wash., said the proposal would delay the rule by one year and would also raise the definition of a complex credit union from $100 million to $500 million. Posey and Heck introduced in March NAFCU-sought legislation to delay the rule by two years. NAFCU will provide members an update following the meeting.

 

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