WASHINGTON (8/1/14)--The ranking Democrat of the House Financial Services Committee, Rep. Maxine Waters of California, met recently with National Credit Union Administration Chair Debbie Matz to discuss the agency's risk-based capital (RBC) plan. She followed up with a letter Thursday asking the NCUA to make every effort to ensure credit unions and banks are regulated equally in this area.
Waters noted her support of the NCUA's effort to revise credit union capital rules, as required under Dodd-Frank Act, so that "lessons learned from the (financial) crisis are not forgotten." However, Waters added that it is "also important that those rules retain the strengths of the current examination process without unintentionally forcing examiners or credit unions to merely check boxes, especially with regard to concentration and interest rate risks."
"Although the statute dictates that NCUA's regulations must address concentration and interest-rate risks, the current proposal does not allow for examiners to impose capital requirements on credit unions that are tailored to the individual risks of the credit union's portfolio"
Waters asks the NCUA leader to revisit the RBC proposal, particularly with an eye to dislodging unintended consequences that could adversely affect certain credit unions.