July 24, 2014

Intent is to end 5% fixed-assets cap, Matz says

July 24, 2014 – NCUA Chairman Debbie Matz said the agency's coming proposal to ease the fixed-assets rule will propose the outright elimination of the 5 percent cap on federal credit unions' fixed-assets.

Matz spoke briefly with NAFCU Today following her speech Wednesday before NAFCU's Annual Conference attendees in Las Vegas. Asked if the proposed rule slated for release July 31 would provide for the "flat out" elimination of the cap, she said "yes."

She wouldn't go into further detail about the proposal except to confirm that other changes to the rule may be included.

NCUA last revised the fixed-assets rule in September by making technical changes. NAFCU has long pressed for an increase in the 5 percent cap on federal credit unions' ownership of fixed assets and welcomed Matz's announcement Wednesday.

Matz, also asked about the risk weights in the risk-based capital proposal, said it is "too early to say at this point" how much of a reduction the agency is looking to take in the proposed risk weights for investments, mortgages, member business loans, credit union service organizations and corporates. "We're not far along enough to know where we will end up" with those, she said.

As for the remainder of her term – which continues to Aug. 2, 2015 – Matz said she will continue to look for ways to streamline and modernize the agency's rules and remains open to credit unions' feedback in that area.