WASHINGTON (9/17/14)--Rep. George Holding (R-N.C.) encouraged the National Credit Union Administration to open a second comment period for its risk-based capital proposal in a letter sent Tuesday.
Holding, who currently serves on the House subcommittee for regulatory reform and antitrust law, said a second comment period should happen "regardless of whether it is required under the Administrative Procedures Act."
The Credit Union National Association has also urged the agency to provide a second comment period before the rule is finalized.
NCUA Chair Debbie Matz stated over the summer that the proposal would not be re-opened for a second comment period unless the agency's general counsel found that it was required to do so under the aforementioned act.
In addition to questioning the authority that gives the NCUA the ability to enact such a rule, Holding asked for an explanation as to why the proposed rule has a well-capitalized requirement in addition to Congress's adequately capitalized standard.
"Protecting the American taxpayer by ensuring credit unions remain solvent in the worst of economic conditions should always be the top priority of the NCUA," Holding wrote. "The National Credit Union Share Insurance Fund performed well during one of the worst economic recessions in our country's history, which many attribute to prompt corrective action standards that were put in place by Congress in 1998."
Holding says the rule, when it is finalized, "should not unduly burden credit unions nor adversely affect healthy credit unions' ability to meet the needs of their members."
A former U.S. attorney, Holding is the 333rd Representative to weigh in on the risk-based capital proposal. Twenty-seven senators have also written to the NCUA with similar concerns.
Use the resource link below to access News Now coverage of legislator concerns with the NCUA's proposal.