3 lawmakers introduce NAFCU-sought RBC2 'stop and study' bill

Capitol Dome 2

June 16, 2015

Reps. Stephen Fincher, R-Tenn., Denny Heck, D-Wash., and Bill Posey, R-Fla., Monday introduced a NAFCU-sought, bipartisan bill that would require NCUA to conduct a study on the appropriate capital requirements for credit unions before implementing its second risk-based capital proposed rule.

The “Credit Union Risk-Based Capital Study Act of 2015” would require NCUA to study and report to Congress on whether the agency has the clear legal authority to issue a two-tier proposal, how RBC2 compares to bank capital requirements, the rationale behind the risk-weighting used by the agency and the impact the proposal will have on credit unions’ capital cushions. The agency would not be able to finalize or implement RBC2 before 120 days after the report goes to Congress.  
NAFCU President and CEO Dan Berger praised the lawmakers’ effort to address serious concerns about RBC2. “NAFCU applauds Representatives Fincher, Posey and Heck for their work in putting together a bipartisan response to this issue,” Berger said. “We appreciate the congressmen’s recognition of RBC2 as a serious and potentially troublesome proposal and their efforts to prevent the growth of excessive regulatory burden on an already well-capitalized industry.”

NAFCU Vice President of Legislative Affairs Brad Thaler also wrote House Speaker John Boehner, R-Ohio, and Minority Leader Nancy Pelosi, D-Calif., to urge House members to support of H.R. 2769. Thaler noted that the proposed rule has prompted 2,167 comment letters and that there are a “myriad of significant concerns” about the proposal.

NCUA’s comment period on the revised proposal ended in April, and the agency reported it received more than 2,000 comments. NAFCU continues to urge that the proposal be withdrawn in favor of legislative reforms to the Federal Credit Union Act that would allow more-effective capital reform.


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