ALEXANDRIA, Va. (2/19/15)--National Credit Union Administration board members shared their differing perspectives on the agency's revised risk-based capital proposal (RBC2) in this month's The NCUA Report.
CUNA has commended the NCUA for the significant revisions in RBC2 compared with the original proposal, but has some remaining concerns, and urges credit union stakeholders to submit comments to CUNA by March 8, and to the NCUA by April 27.
Each member used their column in the monthly newsletter to explain reasons behind supporting, or opposing, the proposal.
NCUA Chair Debbie Matz says the agency is "required by law" to put forth such a proposal and deems it necessary to ensure capital adequacy. She cites the steps she took to confirm the agency has legal authority to enact such a rule.
Vice Chair Rick Metsger calls the agency's current RBC rule "insufficient, ineffective and indefensible," while saying the RBC2 proposal will serve the credit union community well as a tool to detect credit unions that may fail.
Board member J. Mark McWatters explains his vote against the proposal by questioning the legal authority for the NCUA to propose a two-tiered RBC rule, and says that the legislators that enacted the law requiring a risk-based capital rule have stated they did not intend for a two-tier rule.
Other items in the report include: