WASHINGTON (4/4/14)--The Credit Union National Association wants the credit union system conversation on risk-based capital (RBC) to become more interactive. The trade association has launched a new blog to provide the means to make that happen.
Making its debut this morning, the RBCblog is the latest CUNA advocacy tool sparked by the National Credit Union Administration's RBC plan proposed at its January open board meeting. The 198-page risk-based capital framework would impose new requirements on credit unions with assets of $50 million and above. The current 7% leverage capital standard, which is required by the Federal Credit Union Act, would remain the floor.
CUNA supports a risk-based approach to capital but urges significant changes to the NCUA's plan. CUNA maintains that the current proposal will impact far more than the 199 credit unions predicted by the NCUA, and have a far greater cost to credit unions working to replenish their existing capital buffers.
The intent of the new blog is to provide a forum for sharing thoughts on risk-based capital in general and the NCUA's proposal in particular, and to serve as an aggregator of industry-wide thoughts, comments, questions and concerns regarding the proposal.
The blog will allow credit unions and state credit union leagues to air their concerns and share how the proposal will affect their operations. CUNA will also be updating the blog with the latest developments in its efforts to improve the outcome for credit unions regarding the proposal.
For more information about the blog, contact Robin Cook, assistant general counsel for special projects, or Lance Noggle, assistant general counsel for regulatory advocacy, at CUNA. Use the resource links to visit the blog and to access CUNA's RBC Action Center.