WASHINGTON (2/28/14)--May 28 is the public comment deadline for the risk-based capital plan proposed by the National Credit Union Administration earlier this month, according to a document publish Thursday in the Federal Register.
The Credit Union National Association urges credit unions to weigh in on the proposal and let regulators know their concerns regarding the risk-based approach to capital.
CUNA, as reported, has also encouraged the agency to hold public hearings that, in combination with the important step of comment letters, it says will produce an official record of discussions between credit unions and NCUA leadership that could do much to assist the NCUA board in determining the best path for proceeding on the rule.
CUNA supports a modern risk-based capital system for credit unions--in fact, CUNA President/CEO Bill Cheney declare that from the podium in front of 4,400 credit union advocates here this week for the association's 2014 Governmental Affairs Conference.
"What we don't support is layering additional capital requirements on top of our one-size-fits-all outdated system of prompt corrective action," he said.
CUNA has also voice concerns about credit unions' capital buffers. The association has executed a detailed analysis that indicates the proposed risk-based capital rule would require credit unions to add a combined $10.5 billion to their capital just to maintain the levels that they have now to retain current margins above proposed "well capitalized" thresholds CUNA has produced an "Inside Exchange" video segment on the steps for writing an effective comment letter on this issue. (See resource link.)