NCUA listening session opens in L.A.
June 26, 2014 – NCUA’s listening session in Los Angeles has opened with a packed room and credit union representatives ready for a potentially wide-ranging exchange with agency officials and staff on concerns related to NCUA supervision and regulation.
NAFCU Director of Regulatory Affairs Mike Coleman and Regulatory Affairs Counsel PJ Hoffman are both on site for today’s session, and they expect credit unions will be focusing especially on issues arising from NCUA’s risk-based capital proposal.
“We have a lot of members who are seriously concerned about how NCUA’s risk-based capital proposal could impact their bottom lines and services for members,” Coleman said. “NAFCU is taking every opportunity available to press the case for capital requirements that are fair for all credit unions.”
Coleman said that as NCUA considers next steps for this proposed rule, NAFCU will continue to press for significant changes, among them:
- risk-weighting that does not place credit unions at a competitive disadvantage with community banks;
- clear guidance on capital expectations instead of a potentially arbitrary “individual minimum capital requirement”; and
- an implementation and compliance period of at least three years.
Given the recent comments from NCUA Board members regarding the significant changes that will be made to the rule before it is finalized, NAFCU continues to believe that NCUA should re-issue the proposed rule with any changes made using the input received from the comment period and these scheduled listening sessions.
More than a dozen NAFCU member credit unions are represented at today's session. The session, held at The Westin Bonaventure on South Figueroa St., is slated to run until 4 p.m. Pacific time (7 p.m. Eastern). NAFCU will keep its members updated on any further developments.