ALEXANDRIA, Va. (9/3/14)--With the National Credit Union Administration Listening Sessions almost seven weeks in the past, the Credit Union National Association continues its work to inform the scope of the agency's risk-based capital (RBC) proposal. CUNA interim President/CEO Bill Hampel, General Counsel Eric Richard and Deputy General Counsel Mary Dunn met with NCUA Chair Debbie Matz and agency senior staff Tuesday to follow up on credit unions' continued concerns.
"We appreciate the opportunity to meet with the chairman and continue to express our concerns. Among the issues we discussed today was that the proposed higher level for well-capitalized credit unions would negatively affect a number of credit unions' capital buffers. We have urged the agency to lower the well-capitalized RBC level," Hampel said. The NCUA's RBC proposal calls for a 10.5% RBC component for well-capitalized credit unions and an 8% RBC threshold for adequately capitalized credit unions.
As is widely known, the NCUA chair already has stated that the agency will be making changes in several areas, highlighted by CUNA, the state credit union leagues and credit unions as needing change:
CUNA welcomes changes in those areas. The agency may also consider whether the RBC treatment of the 1% National Credit Union Share Insurance Fund deposit as well as goodwill related to mergers should be revised and whether interest-rate risk should be managed as part of the supervisory process rather than under the umbrella of the RBC rule.
CUNA is also underscoring that the significant changes that are anticipated to the original proposal support credit unions having another opportunity to comment on the plan before it comes before the agency for a final vote.