WASHINGTON (3/20/14)--Continuing to add resources for credit unions to its Risk-Based Capital (RBC) Action Center webpage, the Credit Union National Association Wednesday posted a new video that can help credit unions in three ways.
The new video is designed to explain the National Credit Union Administration's RBC proposal, address what credit unions can do to apply it to their situations, and define steps credit unions can take to get involved in the effort to improve the proposal.
Also on Wednesday, CUNA offered a free, one-hour webinar titled "NCUA's Risk-based Capital Rule: Can It Be Fixed?" Topics explored during the webinar included: key aspects of the proposal, the proposal's financial impact on credit union operations, and the top legal issues create by the proposal. (See related story: CU CEOs outline real-life risks of RBC plan during CUNA webinar.) A recoding of the webinar will be available by Friday morning.
CUNA's RBC Action Center is a complete catalog of reference materials for credit unions and also provides credit unions with a tool to take action immediately by sending comment letters to the NCUA by the May 28 deadline.
CUNA strongly supports risk-based capital for credit unions, but warns that the NCUA's current proposal is not the approach to take. CUNA analysis shows that, as written, the NCUA plan could force credit unions to hold as much as $7.3 billion in additional capital.
CUNA President/CEO Bill Cheney has explained that equals a multi-billion-dollar price tag of additional capital for a system that withstood, under the current system, the worst financial crisis in 80 years.