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NCUA Board Member J. Mark McWatters sat down withThe Federal Credit Union, NAFCU's bimonthly magazine, Monday and discussed the agency's risk-based capital proposal, budget transparency and general credit union industry concerns.

During the interview, which will be reported in full with the November-December issue of the magazine, McWatters said he wants NCUA's final risk-based capital rule to "thoughtfully reflect the comments received from the credit union community while ensuring the safety and soundness of the Share Insurance Fund."

Specifically, McWatters said he would like to see some of the risk weights adjusted, interest-rate risk stripped out of the rule and easier-to-understand concentration risk measures incorporated.

He also stressed he wants to see at least a 60- to 90-day comment period on the revised proposal, something NAFCU is advocating for as well. "If the new rules are dramatically different than the first batch, and I think they will be," he said, "then out of respect for the industry and for members of Congress who commented, credit unions should be given ample time to comment."

McWatters said he hopes the proposed rule will not come to the board until the beginning of next year. "What's the rush?" he asked. He said NCUA does not want a repeat of the aftermath from the first round on this proposed rule, which drew more than 2,000 comment letters and more than 300 members of Congress writing in airing their concerns.

Asked about NCUA's budget transparency, McWatters agreed that as many aspects of the budget as possible should be transparent so credit unions know how their money is being spent. "We are running an organization with other people's money," he said. "My view is you disclose everything unless there is a legal or proprietary reason not to."

For more, see the November-December TFCU.