The NCUA Board voted 2-1 to put out a revised risk-based capital plan for credit unions for a 90-day comment period, which will begin when the proposal is published in the Federal Register, CUNA’s News Now reports.
The hundreds of pages of documents are packed with revisions from the agency’s original and highly criticized plan launched almost exactly a year ago on Jan. 23.
NCUA Board Member J. Mark McWatters voted against putting the proposal out for comment in part because of questions about the agency's statutory authority regarding a two-tier system. During the meeting he noted federal lawmakers expressed concerns in this area and quoted from a CUNA legal opinion on the issue.
CUNA President/CEO Jim Nussle released the following statement immediately following the NCUA board meeting:
“I appreciate that the NCUA board reissued its risk-based capital proposal with many of the improvements that CUNA and the leagues requested. We are encouraged that the board listened and responded to credit union concerns, including lowering the 10.5% well-capitalized requirement, lowering some of the risk weights, removing the treatment of interest rate risk, extending the implementation time frame, reducing the number of credit union affected, and addressing the individual minimum capital requirement.
“CUNA’s efforts have helped NCUA make progress, but we remain unconvinced that this risk-based capital approach is even necessary, and are concerned about the risk-based well capitalized requirement and the substantial cost the proposal will impose on credit unions. We will continue to be fully engaged with the NCUA board and the credit union system to enhance the revised rule.”
Following are tweets that show how the day unfolded.