August 24, 2014

Murkowski, Toomey write NCUA on RBC

Lisa MurkowskiPat Toomey

July 31, 2014 – Sen. Lisa Murkowski, R-Alaska, yesterday urged NCUA to consider the unintended consequences of the agency's proposed rule on risk-based capital.

Murskowski, in a letter to agency board Chairman Debbie Matz, commended NCUA for seeking to minimize risks to the financial system but urged that it "take a hard look" at whether proposal's heightened capital standards are justified.

"Alaskan credit unions have raised significant concerns with the new proposal," wrote Murskowski. Given credit unions' limited capital sources, she said the proposal could have unintended consequences, such as higher lending and financial service fees, reduced dividend payments to members and more.

Sen. Pat Toomey, R-Pa., wrote Monday asking for answers on the proposal by Aug. 30. He asked what statutory authority the board has to impose a higher risk-based capital requirement on well-capitalized credit unions; why regulating concentration and interest-rate risk would be better than relying on examiners; and what statutory authority underlies the "individual" capital provision.