January 22, 2014

NCUA risk-based capital rule out for comment

Jan. 23, 2014 – NCUA's board today issued a risk-based capital proposal, the necessity for which NAFCU has questioned for several months.

"The regulatory burden on credit unions is already far too great. Enough is enough," said NAFCU President and CEO Dan Berger. "NAFCU believes that the current regulatory capital system for credit unions is outdated and requires reform, but the reform that is required is legislative.

"We hope NCUA reconsiders its approach and focuses its energy on securing the necessary legislative changes."

The proposed rule would revise how some credit unions would calculate net worth within current statutory capital and prompt corrective action requirements. NAFCU, through its five-point plan for credit union regulatory relief, is urging Congress to correct the law's one-size-fits-all approach to capital and has sought NCUA's support in this effort.

The NCUA Board today also voted to continue the 18 percent loan rate ceiling after March 10 (as urged by NAFCU), issued a final rule on derivatives investments and received updates on the agency's strategic and annual plans.

NAFCU members will be provided with additional updates this afternoon.