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Rep. Bill Posey, R-Fla., yesterday introduced a NAFCU-backed bill that would repeal the NCUA's risk-based capital rule (RBC), which is set to go into effect Jan. 1, 2019.

The bill is titled the Common Sense Credit Union Capital Relief Act of 2017 (H.R. 4464).

Over the past three years, NAFCU has consistently opposed the NCUA's RBC rulemaking and urged its withdrawal because of the adverse effects it would have on the credit union industry – particularly as a result of regulatory burdens and costs. NCUA Chairman J. Mark McWatters has indicated that revisiting this rulemaking is on his list of priorities for this year.

"NAFCU thanks Rep. Posey for introducing this bill that fully recognizes the devastating impact the NCUA's RBC rule would have on the credit union industry," said NAFCU Vice President of Legislative Affairs Brad Thaler.

NAFCU believes legislative changes are necessary to bring about comprehensive capital reform for credit unions, such as allowing credit unions to have access to supplemental capital sources and making statutory changes needed to design a true risk-based capital system for credit unions.

In September, Posey, with Rep. Denny Heck, D-Wash., reintroduced a NAFCU-sought, bipartisan bill (H.R. 3736) that would require the NCUA to conduct a study on the appropriate capital requirements for credit unions before implementing its final RBC rule.