NCUA published its Advance Notice of Proposed Rulemaking (ANPR) on alternative capital in the Federal Register Wednesday, with comments due to the agency by May 9. NCUA approved the ANPR at its January meeting, and CUNA welcomed the move and urged stakeholders to share feedback with the agency.
NCUA considers alternate capital to fall in 2 categories: secondary and supplemental. Secondary capital is currently permissible only for low-income designated credit unions to issue and to be counted toward both the net worth ratio and the risk-based net worth requirement.
The board is considering changes to the secondary capital regulation for low-income designated credit unions.
The board is also considering whether or not to authorize credit unions to issue supplemental capital instruments that would only count towards the risk-based net worth requirement.
Besides a number of detailed questions present in the ANPR, the board seeks answers to the following broad questions:
Comments can also be sent to CUNA by May 9.