WASHINGTON (7/28/14)--Missouri credit unions have raised several issues with the National Credit Union Administration's risk-based capital proposal, prompting Sen. Claire McCaskill (D-Mo.) to write to the agency.
McCaskill, chair of the Senate Commerce, Science and Transportation subcommittee on consumer protection, product safety and insurance, expressed her concern that the new rules will have a negative affect on credit unions in her state and around the country.
"There is concern that the new risk weights are not each set at appropriate levels to best reflect the risks present in the market. These new calculations will result in a downgrade of 79% of Missouri credit unions covered by the new rules," she wrote. "With this drastic impact, credit unions should have confidence that these numbers were achieved with careful study. I urge NCUA to conduct further examination of the risk weights applied to each form of capital to ensure they are appropriate."
McCaskill also raised concerns about the proposed implementation period, citing the unique difficulties faced by credit unions when it comes to raising capital.
NCUA Chair Debbie Matz said during the agency's series of Listening Sessions that the implementation period would be more than the originally proposed 18 months. The agency has since stated that risk weights would be adjusted, particularly in the areas of mortgages, member business loans, investments, credit unions service organizations and corporate credit unions.
McCaskill is a proponent of several regulatory relief measures. In February she introduced a bill that is designed to require minimum disclosures from entities that send abusive patent demand letters, known as "patent trolls."