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October 15, 2018

This week: NAFCU urging CU advocacy, following NCUA budget briefing, RBC rulemaking

capitolSenate and House lawmakers are in their home districts and states though the Nov. 6 midterm elections, providing a great opportunity for credit unions to reach out on top industry issues as NAFCU continues its award-winning advocacy on Capitol Hill.

On Wednesday, NAFCU Board Chair Jeanne Kucey (president and CEO of JetStream Federal Credit Union) will provide comments on the NCUA's draft 2019 and 2020 budgets during a briefing. NAFCU has long supported public budget briefings to help ensure transparency and accountability in the budgeting process. The budgets estimate $304.4 million in spending for 2019 and $316.2 million in spending for 2020.

On Thursday, the NCUA Board is expected to finalize a rule to amend its risk-based capital (RBC) rule and issue a proposed rule to modernize the Federal Credit Union (FCU) Bylaws.

Also this week, NAFCU's Regulatory Committee holds its monthly meeting Tuesday.

NAFCU advocacy

In recent weeks – as a result of NAFCU and credit union advocacy – Congress has made progress on credit union priorities including data security and regulatory relief, and also left the industry's tax-exempt status untouched in its second push for tax reform. NAFCU is also defending the credit union industry against efforts to wrap it into the Community Reinvestment Act, and is instead asking that credit unions be granted the ability to serve underserved areas.

Furthermore, the association is pushing for the withdrawal of a proposed rulemaking that would loosen Volcker rule requirements on big banks.

For those credit unions looking to reach out to their lawmakers, NAFCU's website has resources available on top industry issues, and its Grassroots Action Center has lawmakers' contact information readily accessible.

NCUA

During the NCUA's open meeting Thursday, the board is poised to finalize a rule to amend its 2015 RBC rule. The agency's proposal, issued in August, would delay the rule's effective date by one year to Jan. 1, 2020, and amend the definition of a complex credit union from $100 million to $500 million. Although NAFCU 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.

Also during Thursday's board meeting, the NCUA is expected to propose a rule to modernize the Federal Credit Union (FCU) Bylaws. NAFCU has ardently advocated for bylaws changes and previously offered ways to modernize them.