The JOBS and Investor Confidence Act of 2018 (S. 488) passed the House of Representatives in a 406-4 vote on Tuesday. Title XVII of the House Amendment would delay the risk-based capital rule recently finalized by the National Credit Union Administration (NCUA). Credit Union National Association (CUNA) supports the measure as it reduces the impact on credit unions by pushing the effective date from January 1, 2019 to January 1, 2021.
“We commend the House Financial Services Committee for pushing this legislation through as it rectifies the need for unnecessary capital requirements on credit unions,” said CUNA President/CEO Jim Nussle. “Credit unions across the country have expressed their well-founded concerns regarding NCUA’s risk-based capital rule and their voices have been heard."
CUNA sent a letter to address NCUA's parameters of legal authority to impose risk-based capital requirements and call into question whether the cost is justified. Analysis from the trade group shows that the regulatory burden 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.