July 23, 2014

Begich to NCUA: Amend RBC proposal

July 24, 2014 – Sen. Mark Begich, D-Alaska, wrote NCUA Chairman Debbie Matz on Wednesday to urge the agency to take credit unions' "overwhelming feedback" into account and amend its proposed risk-based capital rule.

"Member-owned and not-for-profit, credit unions are distinct from other participants in financial markets. They are subject to very different limitations in their operations, so regulations intended for one type of financial institution, such as banks, cannot be blanketed onto credit unions with a good fit," Begich wrote.

"I request that NCUA amend the proposed risk-based capital rule to take into account overwhelming feedback from the credit union community and others so as not to unfairly burden credit unions and damage their ability to serve their members."

NAFCU continues to raise concerns about the proposal's risk weights, which differ from those of the FDIC, and to urge an implementation period of at least three years.