ALEXANDRIA, Va. (6/19/14)--National Credit Union Administration board member Rick Metsger and his senior policy advisor, Mike Radway, met with Credit Union National Association officers this week to discuss the agency's Risk-Based Capital proposal.
Separate CUNA meetings with NCUA Chair Debbie Matz and NCUA Director of Examination and Insurance Larry Fazio also are scheduled for this week. CUNA already has met with NCUA General Counsel Mike McKenna and is working to meet soon with others at the agency.
"The discussion was comprehensive and productive," reported CUNA Deputy General Counsel Mary Dunn. "It is clear that Board Member Metsger is studying the comments and has an open mind in terms of considering significant improvements to the final rule. In addition to reading many of the comment letters, he is also meeting with state leagues and credit union groups across the nation to better understand their concerns and priorities. CUNA appreciates his efforts and approach to reviewing recommendations that would minimize the impact of the proposal on credit unions without undermining the agency's safety and soundness objectives."
CUNA's meeting with Metsger discussed at length significant recommendations to achieve a better outcome for credit unions. Areas that CUNA highlighted included:
The need to improve the examination process so legitimate and material issues can be spotted sooner in problem credit unions, while well-managed credit unions are not subjected to unwarranted examiner intrusion, was also discussed. In addition, the importance of addressing interest rate risk as a supervisory or regulatory issue and separate from the RBC proposal was reviewed. Depending on the scope and nature of the changes the agency makes in the RBC proposal, CUNA also stated that having an additional opportunity to comment on a new proposal could be useful to credit unions and the NCUA alike.
"CUNA will continue its rigorous regulatory advocacy efforts, as long as it takes, to urge the agency to make a range of significant changes to the RBC proposal," noted CUNA Interim President/CEO Bill Hampel.