October 05, 2015

NCUA should share supplemental capital plans, Berger writes

NAFCU President and CEO Dan Berger asked NCUA to release an outline of regulatory changes it is considering on supplemental capital before a formal rulemaking is released. A proposed rulemaking is expected before year-end, NCUA Board Chairman Debbie Matz told a House Financial Services subcommittee this summer.

Testifying before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit in July, Matz said the anticipated proposed rule would allow supplemental capital to be counted toward credit unions' risk-based capital ratios under the RBC final rule, slated for implementation in 2019.

Berger wrote Monday that any regulatory changes the agency plans to make on supplemental capital will "benefit from additional discourse and debate." Berger's letter was sent to Matz, NCUA Vice Chairman Rick Metsger and Board Member J. Mark McWatters.

NAFCU holds that allowing eligible credit unions access to supplemental capital, in addition to retained earning sources, will help ensure healthy credit unions can achieve manageable asset growth and continue to serve their members efficiently.