April 25, 2014 – NCUA Chairman Debbie Matz this week declined NAFCU’s and CUNA’s joint request for an additional 90 days for credit unions to submit comments on the agency’s risk-based capital proposal, but the other two board members have yet to weigh in.
“Unfortunately, the ramifications of the agency’s risk-based capital rule will create a long-lasting legacy for NCUA of doing significant harm to the credit union industry,” said NAFCU President Dan Berger. “Based on the seriousness of the contents of this rule, it makes absolutely no sense not to grant a time extension.
“It is difficult to understand how a rule like the derivatives investment rule, with its limited impact, could have two advance notices of proposed rulemaking and a proposed rule before being finalized, yet NCUA will not grant similar scrutiny of a proposal that will affect all credit unions with more than $50 million in assets.”
Berger said NAFCU looks forward to hearing from NCUA’s other two board members on the requested extension. The request was sent last week to Matz, Board Member Rick Metsger and Board Member Michael Fryzel.
Matz, writing Berger and CUNA President and CEO Bill Cheney, says in her response that the proposal has been available to credit unions since January and that this makes for "one of the longest" periods allowed for comment in the agency's history. She sought to reassure that after the agency processes comment letters, it will hear additional input from credit unions during this summer's listening sessions.
The board "is prepared to make those changes to the proposal we conclude are fundamentally sound and justifiable from a public policy perspective...," Matz wrote. Matz discussed the issue further in a video Thursday with Credit Union Times.
NCUA’s proposed capital rule is out for comment until May 28.