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More than three-fifths of respondents to NAFCU's latest Economic & CU Monitor survey on the NCUA's risk-based capital (RBC) rule did not believe the rule will increase the overall safety of the National Credit Union Share Insurance Fund (NCUSIF) as the NCUA has argued.

Additionally, a similar number of respondents said that because the NCUA has increased the NCUSIF's normal operating level to 1.39 percent of insured shares – the highest level in its history – RBC is not necessary. Roughly one-third said the single biggest impact the RBC rule would have on their credit unions is that they would be "forced to hold excess capital."

The Monitor was sent to NAFCU members yesterday and is now available for download. The report also highlights recent efforts to postpone the NCUA's RBC rule, which has an effective date of Jan. 1, 2019. NAFCU continues to pursue all avenues – including legislation – to keep this potentially harmful rule from going into effect.

Also included in this Economic & CU Monitor are the results from the December Credit Union Sentiment Index (CUSI), an index based on NAFCU member responses to eight questions on growth and earnings outlook, lending conditions and regulatory burden.

The CUSI declined slightly in December – registering at 67.2 from 67.3 in November – due in part to a more pessimistic earnings outlook. The growth component registered its highest reading since the index's inception in June. Although members' view of the regulatory burden over the past year was slightly more negative this month than in November, they indicated greater optimism for the coming year, possibly influenced by the leadership change at the CFPB.

NAFCU members are encouraged to participate in the association's surveys. Next month's Monitor will focus on how credit unions are responding to CFPB efforts, including possible debt collection rulemakings, mortgage servicing rules and qualified mortgages rule. Credit unions can fill out the survey online; responses are due by Jan. 8.