ALEXANDRIA, Va. (10/15/15)--A final risk-based capital (RBC) rule will be approved by the National Credit Union Administration today. CUNA has called the RBC rulemaking process an important example of how credit unions can impact the development of a regulation when they fully engage.
It has taken almost two years--as well as an historic level of comments from credit unions, lawmakers and other interested parties--to reach the moment today when the three-member board will vote the fate of RBC2. As no surprise to anyone, the capital plan also attracted hundreds of comments from the banking industry--all but a fraction mass-generated form letters--trying to affect the rule's dimensions.
CUNA has steadily maintained that the NCUA has no responsibility to write a rule for credit unions on risk-based capital. However, CUNA also sees it as a victory for credit unions that they helped affect such "meaningful and significant" changes between RBC1 and RBC2.
Still, CUNA has several changes it is looking for in the final proposal, including removal of the capital adequacy provisions, reduction in a number of the risk weights, further explanation of the conditions under which goodwill could be included in the risk-based capital ratio and delaying implementation until 2021.
The NCUA meeting is scheduled to start at 10 a.m. (ET) and will be livestreamed on the NCUA's website. Follow @NewsNowLiveWire, @CUNA, and @CUNAAdvocacy and search #RBC2 for live updates on Twitter and watch News Now for more. Click here to subscribe to News Now updates.
Other items on today’s agenda include: