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FOR IMMEDIATE RELEASE

NAFCU Statement on NCUA Board's Upcoming Second Risk-Based Capital Proposal

Washington (Jan. 8, 2015) - National Association of Federal Credit Unions (NAFCU)Senior Vice President of Government Affairs and General Counsel Carrie Hunt issued the following statement in response to the announcement from the National Credit Union Administration (NCUA) Board that it has slated a second risk-based capital proposal for its Jan. 15 open meeting.This second proposal follows major push-back from NAFCU on last year's risk-based capital proposal.

"NAFCU urges NCUA to give significant weight to the input it receives from credit unions on this second risk-based capital proposal," said Hunt. "The 2,000 comments it received on last year's version are evidence that credit unions have serious concerns about NCUA's approach to revising the industry's capital requirements.NAFCU will continue to do whatever it takes to ensure that a fair, risk-based system is established for credit unions."

NAFCU expects the new proposed rule will have at least a 90-day comment period. However, NAFCU still has concerns about the agency's plans for a second proposal. It will closely examine the new proposal for its impact on credit union safety and soundness and whether it will hinder credit unions' ability to serve members effectively. NCUA Chairman Debbie Matz has said the second proposal will have a 90-day comment period, after NAFCU strongly urged the agency to give credit unions time to thoroughly review and submit comments on the second proposal.

In December, NAFCU President and CEO Dan Berger wrote Matz to say capital reform must include access to supplemental capital for all credit unions. He also noted several ongoing concerns about the proposal.

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