July 18, 2014

NCUA responds to McHenry RBC questions

July 21, 2014 – NCUA Board Chairman Debbie Matz responded Friday to House Financial Services Oversight and Investigations Subcommittee Chairman Patrick McHenry, R-N.C., on the agency's risk-based capital proposal.

McHenry wrote to Matz July 7 seeking answers about any cost-benefit analysis the agency performed for the proposed rule, the reasons for the proposed asset-class risk weights and how much authority examiners would have to recommend capital levels that may deviate from the risk-based standards in the rule.

Much of the letter is similar to previous letters the agency has sent to Congress. The response did include a summary table of how NCUA's proposal differs from the FDIC risk weights. But under NAFCU's analysis there appears to be little, if any, information not previously made public.

"NAFCU continues to press for a rule that is fair for all credit unions and protects the safety and soundness of the industry. We appreciate NCUA's willingness to hear from stakeholders and to consider changes to its proposed rule," said Carrie Hunt, NAFCU's senior vice president of government affairs and general counsel.

Hunt added, "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."