ALEXANDRIA, Va. (10/9/15)--A final vote on the National Credit Union Administration’s revised risk-based capital (RBC2) proposal is on the agenda for the agency’s Oct. 15 meeting. The agenda names three other items for consideration, including permissible investment activities.
The agency issued RBC2 in January after its original proposed rule was introduced last year. The revised proposal has a number of improvements, but CUNA continues to believe, in the words of President/CEO Jim Nussle, that it is a “solution in search of a problem.”
However, CUNA noted roughly 25 key improvements over the agency’s first risk-based capital proposal. These include:
NCUA Chair Debbie Matz, in a letter sent to legislators Thursday, said "the final risk-based capital rule will be calibrated to affect only a few dozen credit union outliers not carrying sufficient capital to match the risks on their balance sheets." CUNA requested the NCUA make those calibrations.
CUNA made a number of other suggestions in its comment letter, including:
The other items on the agenda include the proposed rule on permissible investment activities-bank notes, delegations of authority for the approval of community charter requests and a quarterly update on the National Credit Union Share Insurance Fund.
The NCUA has indicated that it will issue proposals on field of membership and supplemental capital by the end of this year.
For more coverage of Matz’s letter sent to legislators Thursday, see “Matz promises to be responsive to Reps. on RBC2” in today’s News Now.