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The NCUA Board during its meeting Thursday is expected to finalize a rule to amend its 2015 risk-based capital rule and issue a proposed rule to modernize the Federal Credit Union (FCU) Bylaws. NAFCU strongly supports a delay in NCUA's capital rule, and the association has ardently advocated for bylaws changes.

Thursday's meeting is slated to begin at 10 a.m. Eastern; the agenda is available here.

Bylaws Modernization

In March, the NCUA issued an advance notice of proposed rulemaking (ANPR) that sought feedback on ways to streamline, clarify and improve the FCU Bylaws. The bylaws have not been revised since 2007, and NAFCU has previously offered ways to modernize them.

Following NAFCU's letter in May responding to the ANPR, which offered suggestions to improve the bylaws in order to reduce credit unions' regulatory burdens and provide increased operational flexibility, the association's Regulatory Committee and NCUA staff discussed this modernization initiative in September.

Read NAFCU's suggestions here.

RBC Rule

The NCUA in August proposed amendments to the RBC rule, which is set to go into effect Jan. 1, 2019, that would:

• delay the effective date by one year to Jan. 1, 2020, though current prompt corrective action requirements would remain in effect;

• amend the definition of a complex credit union from $100 million to $500 million; and

• exempt an additional 1,026 credit unions from the final RBC rule because of the changes.

Although the association acknowledged the NCUA's proposal as "positive," NAFCU President and CEO Dan Berger has encouraged the NCUA to "consider its entire rulemaking anew" following the enactment of S. 2155, which made changes to bank capital. A NAFCU-backed provision to delay the rule by two years passed the House three times.