July 21, 2014

Matz on listening sessions: 'Spirited discussion' but 'same goals'

July 22, 2014 – Following the agency's listening sessions, NCUA Board Chairman Debbie Matz said the agency's proposed risk-based capital rule will have a longer implementation period than originally proposed.

Matz said the "spirited discussion" at the three listening sessions showed that the agency and credit unions have the same goals of "safety and soundness, prudent lending and effective regulation."

She said an implementation period longer than the originally planned 18 months will allow credit unions enough time to adjust operational plans and balance sheets, and give NCUA enough time to update the Call Report system and train field examiners.

The agency said more than 400 people attended the listening sessions in Los Angeles, Chicago and Alexandria, Va., which concluded last week.

"Many valid questions and concerns were raised about our proposed rule," Matz said. "We are listening carefully, and I anticipate the agency will make appropriate changes. For starters, we plan to lower the risk weights on investments, mortgages, member business loans, credit union service organizations and corporates, as well as extend the implementation period."

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.

NAFCU Regulatory Affairs Counsel PJ Hoffman said, "We appreciate Chairman Matz's willingness to hear from stakeholders and to consider changes to the proposed rule. Nevertheless, many questions still remain and we believe that the agency should reissue a proposal for notice and comment before any final rule is issued, and that it should give credit unions ample time – at least three years – to comply."

Matz will speak at NAFCU's Annual Conference and Solutions Expo in Las Vegas tomorrow morning.