NAFCU urges Senate Banking Committee leaders to support RBC delay
NAFCU Vice President of Legislative Affairs Brad Thaler sent a letter to Senate Banking Committee Chairman Mike Crapo, R-Idaho, and Ranking Member Sherrod Brown, D-Ohio, urging them to include language that would delay the NCUA's risk-based capital (RBC) rule by two years in any final Committee on Foreign Investment in the United States (CFIUS) legislation.
In his letter, Thaler voiced NAFCU’s strong support for this provision noting that the RBC rule – as it is currently written – would have a negative impact on the credit union industry due to increased regulatory burdens and costs.
"A two-year delay in the rule would give credit unions more time to prepare and comply, and more importantly, it would give the NCUA time to fix the rule, which they have expressed interest in doing,” said Thaler.
NAFCU supports an appropriate RBC system for credit unions, but has long advocated for a modification or delay of the RBC rule.
On Tuesday, following NAFCU-led efforts, the House passed a two-year delay of the RBC rule as part of a larger CFIUS bill, H.R. 5841.
Following the House vote, NAFCU President and CEO Dan Berger noted, “We have sought relief from this rule since it was finalized, and we are pleased to see this provision gaining traction as lawmakers recognize the negative impact this rule would have on the credit union industry."
NAFCU will continue to lead the push to delay the RBC rule.
To read the full letter, click here.
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