ALEXANDRIA, Va. (11/24/14)--National Credit Union Administration Chair Debbie Matz assured senators from agricultural states that she shares their concerns that a revised risk-based capital (RBC) plan should not disrupt credit unions' agricultural lending. She assured that the agency will keep in mind any impact a new rule might have on the ability of credit unions to serve farmers and ranchers.
Matz's statement came in a Nov. 19 letter to Sens. Debbie Stabenow (D-Mich.) and Thad Cochran (R-Miss.). It was in response to a letter the two sent Nov. 12 questioning the proposal's impact on the ability of credit unions to support agricultural lending.
"The NCUA board will remain mindful in its deliberations of the trade-offs between the costs and benefits of the regulation, so credit remains available for family farmers, ranchers, consumers, homebuyers and small business owners in rural communities across the nation," Matz wrote.
She added that the new proposal will include revised risk weights for member business loans, including loans to family farms and ranches. Mortgages, investments, credit union service organizations and corporate credit union risk weights also will be modified from the original proposal.
"Additionally, stakeholders will be invited to comment on an alternative approach for addressing interest-rate risk using the supervisory process," Matz wrote.
The Credit Union National Association advocated for interest-rate risk to be addressed in the regulatory, examination and supervision process in its comment letter filed with the NCUA in May.
Matz said in the letter that the new RBC proposal could be discussed at the December open board meeting, but on Friday announced she had decided to request that the board tackle the RBC plan at its January meeting instead. (See related story: Revised RBC rule likely to be unveiled Jan. 15, 90-day comment period to follow.)