Bipartisan majority of House members sign NAFCU-backed RBC letter
|Peter King||Gregory Meeks|
May 14, 2014 – A NAFCU-supported letter expressing concerns about NCUA's risk-based capital proposal has garnered more than 320 signatures from members of the House and is set to be sent to NCUA Chairman Debbie Matz shortly.
The letter was authored by Reps. Peter King, R-N.Y., and Gregory Meeks, D-N.Y., and encouraged Matz to consider the cost and burden for credit unions of imposing new risk-based capital requirements beyond the current leverage ratio, and how those requirements might affect mortgage and small business credit availability. The letter also asked Matz to give credit unions more time to comment for the record and, if the rule is adopted, more time in which to comply. The letter called for "justification and more clarity" about why the proposed risk weights are different than the standards in place for other community financial institutions.
"We appreciate the leadership shown by Representatives King and Meeks, and their colleagues from both sides of the aisle, in expressing their concerns about NCUA's seriously flawed risk-based capital proposal," said NAFCU President and CEO Dan Berger. "The numbers speak volumes as to how invested Congress is in this issue. NCUA needs to get this right for all credit unions across the country.
"Credit unions' regulatory burden is growing quickly enough without the added burden posed by this harmful capital proposal. Enough is enough. We need NCUA to take a breath, heed legislators' concerns and work in a transparent and collaborative nature going forward."
During a hearing last month, Rep. Ed Royce, R-Calif., questioned NCUA General Counsel Michael McKenna on the proposed rule, echoing NAFCU's ongoing concern that the proposal's risk weights are not accurate reflections of risk.
The deadline for comment letters to NCUA on the proposal is May 28. This proposed rule would affect all credit unions with more than $50 million in assets.
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