Newsroom

Following additional NAFCU-led efforts, the House Tuesday passed for a second time a two-year delay of the NCUA's risk-based capital (RBC) rule. The association has long advocated for a delay and changes to the rule, and the association's efforts proved instrumental in getting this provision into the bipartisan JOBS and Investor Confidence Act of 2018 (JOBS Act 3.0), which cleared the House 406-4.

House Financial Services Committee Chairman Jeb Hensarling, R-Texas, and Ranking Member Maxine Waters, D-Calif., unveiled the JOBS Act 3.0 last week as part of a second effort to advance bipartisan regulatory relief in this Congress.

"NAFCU applauds the bipartisan work of Chairman Hensarling and Ranking Member Waters in crafting the JOBS and Investor Confidence Act of 2018, and we appreciate the support of all House lawmakers who voted in favor of this legislation," said NAFCU President and CEO Dan Berger. "A two-year delay of the NCUA's risk-based capital rule will give credit unions more time to comply with the rule and the agency time to make some necessary changes.

"While NAFCU supports an appropriate risk-based capital system for credit unions, this rule – as currently written – will only have a negative impact on the industry," Berger added. "We thank leaders and members of the House for recognizing the increased burden and costs this rulemaking would bring."

This RBC-delay provision is also included in the House-passed Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841). This bill is currently in conference with the Senate-passed version, which was folded into the National Defense Authorization Act (NDAA) passed by the Senate.

The RBC-delay language comes from the Common Sense Capital Relief Act (H.R. 5288), which was introduced by Reps. Bill Posey, R-Fla., and Denny Heck, D-Wash., in March. Berger has met with Posey and Heck to thank them for their ongoing efforts to protect the industry from the adverse effects of this rule.

The House this week is also expected to pass the fiscal 2019 House appropriations bill on financial services, which also houses a two-year delay of the RBC rule, among other regulatory relief measures. If this bill passes, it will mark the third time the House has passed NAFCU's RBC-delay language this year.

NAFCU will continue to lead the push to delay the RBC rule, currently slated to go into effect Jan. 1, 2019.