Comments on NCUA’s risk-based capital proposal and a CUNA-backed proposal from the Financial Accounting Standards Board (FASB) are due in September.
The NCUA board proposed its risk-based capital rule at its Aug. 2 meeting. It would delay the effective date of the rule by one year, to Jan. 1, 2020.
It would also raise the asset threshold for defining a complex credit union to $500 million, up from $100 million. According to NCUA, this means 90% of credit unions would be exempt from the rule.
Comments on the proposed rule are due to NCUA Sept. 7.
Also due in September is FASB’s proposal of a CUNA-backed change to implementation of its current expected credit loss (CECL) standard. CUNA called for FASB to make clarifications to the implementation date, and the board agreed to issue the proposal at its July meeting.
The proposal would effectively provide a delay for non-public business entities (which includes state and federally chartered credit unions), requiring them to implement CECL for fiscal years beginning after Dec. 15, 2021, including interim periods within those fiscal years.
Comments on FASB’s proposed rule are due Sept. 19.