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Feb. 27, 2014 – NCUA's risk-based capital proposal is in today's edition of the Federal Register, and comments are due to NCUA May 28.

NAFCU has questioned the timing of the proposed rule, issued amid a decline in the number of CAMEL Code 4 and 5 credit unions, the percentage of insured shares held by such institutions and the rate of credit union failures.

The association also remains concerned about the proposal's allowance for increases in credit unions' risk-based capital requirements, case by case, under certain circumstances.

NAFCU President and CEO Dan Berger, in a recent Credit Union Times editorial, said the NCUA proposal could harm healthy credit unions and will affect more institutions than the 200 or so the agency says would be impacted. NAFCU's research shows that credit unions with more than $50 million in assets will have to hold an additional $6.3 billion more in reserves to maintain their capital cushion if this rule were to be finalized.

NAFCU has published a Regulatory Alert seeking its members' input to the association's official comment by April 1.