The NCUA board approved a two-year delay on its risk-based capital (RBC) rule at its Thursday meeting, in addition to approving the agency’s 2020-21 budget and receiving a briefing on the Normal Operating Level (NOL).
Specifically, the RBC delay will move implementation back to Jan. 1, 2022, back from the originally scheduled Jan. 1, 2020. While CUNA urged the agency in its July comment letter to approve the delay, it maintains that the rule is unnecessary, and a solution in search of a problem.
The 2020 Operating Budget was approved at$315,883,000 and the 2021 Operating Budget at $327,973,000. The 2020 Capital Budget was approved at $25,076,000 and the 2021 Capital Budget at $25,205,000.
In addition, the board approved the 2020 National Credit Union Share Insurance Fund Administrative Budget at $6,450,000 and the 2021 share insurance fund Administrative Budget at $6,932,000.
CUNA presented at NCUA’s budget briefing last month, thanking NCUA for a transparent process. CUNA also submitted comments raising several concerns.
During the NOL briefing, NCUA staff agreed to maintain the NOL at 1.38% for 2020, and staff said they did not anticipate an equity distribution to credit unions during 2020.
CUNA continues to call on NCUA to reduce the NOL to 1.30% by 2021, and to issue share insurance fund distributions whenever possible with the expectation that the initial NOL increase was temporary.
Additional details can be found on CUNA’s Removing Barriers Blog.