Newsroom

March 14, 2018

NAFCU-backed RBC delay bill introduced in House

Reps. Bill Posey, R-Fla., and Denny Heck, D-Wash., last night introduced a NAFCU-backed bill that would delay the NCUA's risk-based capital (RBC) rule by two years – moving its implementation date from Jan. 1, 2019, to 2021.

"NAFCU thanks Rep. Posey and Rep. Heck for their leadership in acknowledging the harmful impacts the RBC rule would have on the credit union industry and working with credit unions to address this problem," said NAFCU President and CEO Dan Berger. "If the RBC rule is allowed to take effect as written, more than 400 credit unions would see a decline in their capital cushions. A two-year delay in the rule would give the NCUA time to fix the rule and credit unions more time to comply."

NAFCU supports an appropriate RBC system for credit unions. Over the past three years, the association has consistently opposed the NCUA's RBC rulemaking and has urged the rule be modified or effective date delayed, particularly because of increased regulatory burdens and costs.

In December, the House Financial Services Committee approved of NAFCU-backed legislation – also sponsored by Posey – to repeal the NCUA's RBC rule. The bill now awaits House action.