CUNA issued a letter urging House leadership to Title XVII of the House Amendment to S. 488, the JOBS and Investor Confidence Act of 2018, which would delay the risk-based capital rule recently finalized by the NCUA.. 

Credit unions … have expressed their significant concerns regarding the NCUA’s risk-based capital standards for credit unions,” the letter reads. ”Specifically, many of these concerns pertain to whether NCUA has legal authority to impose the requirements. In addition, credit unions have a particular concern with risk-based capital standards for the purpose of determining whether a credit union is well-capitalized as the Federal Credit Union Act permits the NCUA to impose a risk-based standard for the purpose of determining capital adequacy only. 

CUNA also said credit unions are concerned with the additional regulatory burden imposed by NCUA’ risk-based capital standards, and question whether the cost is justified. “Our analysis shows that it would have done very little to reduce costs to the National Credit Union Share Insurance Fund (NCUSIF) had it been in effect during the most recent financial crisis.”