WASHINGTON (4/24/14)--While the Credit Union National Association opposed the capital planning and stress-testing proposal issued by the National Credit Union Administration in December, it urged the agency to include significant changes if the board votes to adopt the rule in final form.
The rule is on the agency's open board meeting agenda today. The final rule would directly impact credit unions with assets of $10 billion or more.
CUNA will also be reviewing carefully the agency's field-of-membership proposal regarding associational group additions, which is also on the agenda.
Regarding the stress-testing proposal, CUNA cited among its concerns the hefty $4 million total price tag all federally insured credit unions would shoulder for the agency's implementation of the rule in just the first year.
CUNA is also concerned that the proposal called for the results of the stress tests to be made public and that NCUA's approach would duplicate what large credit unions are already doing in terms of stress testing.
These concerns are in addition to the fact that there is no statutory requirement for such testing, CUNA has noted.
Another top consideration emphasized by CUNA is the timing of the adoption of the stress-testing rule. CUNA argues it should not be approved prior to the issuance of a risk-based capital (RBC) rule because stress-test results could impact RBC requirements.
The NCUA proposed a controversial RBC plan at its January open board meeting, and credit unions have until May 28 to comment. CUNA has urged a 90-day extension to that comment deadline.