WASHINGTON (3/31/14)--The recent risk-based capital (RBC) proposal has remained a front-burner issue, and the Credit Union National Association has introduced an improved calculator to help credit unions gauge the impact of the proposed changes.
CUNA has also met with the National Credit Union Administration to discuss the agency's RBC proposal.
The new, improved CUNA Risk-Based Capital Calculator lets credit unions determine how the proposal would impact them over time by evaluating changes to their risk assets and ratio numerator values.
The tool also helps credit unions simulate a variety of risk-weighting options. "In addition the weighting options give a credit union the ability to more realistically assess the impact of future balance sheet growth and earnings assumptions. Best of all, the new calculator automatically load's a credit union's data--eliminating the need to gather and hand-enter information," CUNA Vice President of Economics and Statistics Mike Schenk explains.
CUNA's meetings with the NCUA have featured an intensive, ongoing dialogue on credit union concerns regarding the proposal--including a need for broad changes and areas in which the proposal does not conform to Federal Credit Union Act prompt corrective action requirements.
"We are feeling some initial encouragement that the agency is open to changes in the proposal," CUNA President/CEO Bill Cheney wrote in last week's edition of The Cheney Report.
CUNA is also meeting with Capitol Hill staff on the proposal, focusing the discussion on how the RBC issue could be highlighted during upcoming House Financial Services Committee hearings.
Overall, CUNA has warned that the RBC plan, as proposed, could affect the core operations of most, if not all, credit unions with assets over $50 million. If the RBC proposal is not withdrawn, changes must be made, CUNA has emphasized.
A free, hour-long webinar on the proposal is available on CUNA's homepage.
For this week's The Cheney Report, and more on the RBC proposal, use the resource links.