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FOR IMMEDIATE RELEASE

NAFCU Lauds NCUA Chairman Matz's Announcement of Second Proposal on Risk-Based
Capital Rule

Washington (Sept. 29, 2014) - National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger today laudedNational Credit Union Administration (NCUA) Chairman Debbie Matz's announcement that the agency would issue a second proposal on risk-based capital with a new comment period, a move which NAFCU has been urging for the past year.

"We laud Chairman Matz's leadership and responsiveness to the myriad concerns that credit unions expressed regarding the initial risk-based capital proposal," said Berger. "We appreciate NCUA's review of the complex issues related to risk-based capital and look forward to working toward a rule that does not harm the industry.

"Additionally, we are encouraged by NCUA Vice ChairmanMetsger's recommendation to separate interest-rate risk from credit risk in the rule and NCUA Board Member McWatters' commitment to not consider the rules for adoption unless they were re-proposed with a robust comment period of not less than 60 to 90 days and his decision to await the new proposal before passing judgment."

Due to significant structural changes being considered, NCUA today announced it would issue a second proposal on risk-based capital and that it could be issued for comment before the end of this year.

NCUA said that based on stakeholder comments, the amended proposal will include a longer implementation period and revised risk weights for mortgages, investments, member business loans, credit union service organizations and corporate credit unions, among other changes. The agency said stakeholders will also be invited to comment on an alternative approach for addressing interest rate risk using the supervisory process.

The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.

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Contact: Patty Briotta | 703-842-2820 | pbriotta@nafcu.org