WASHINGTON (2/28/14)--Following up on concerns voiced by credit unions at the Credit Union National Association's Governmental Affairs Conference (GAC) here this week, CUNA's Executive Committee and key senior staff discussed the National Credit Union Administration's risk-based capital (RBC) plan with agency chairman Debbie Matz and senior NCUA staff. The meeting also addressed other key areas of credit union concerns.
"This meeting afforded the group an important opportunity to raise directly to the chairman and her top staff the range of concerns that have already surfaced regarding the proposed capital rule," said CUNA Deputy General Counsel Mary Dunn, following the meeting.
The CUNA group focused on concerns, such as:
"Credit unions have zeroed in on the exclusion of the National Credit Union Share Insurance Fund 1% deposit and goodwill in calculating the RBC ratio under the proposal. The need for legislative authority for supplemental capital and prompt corrective active reform was also highlighted in this meeting," Dunn reported.
The discussion of risk-based capital with Matz reflected concerns raised by credit union officials at the special session on the proposal held by CUNA held Sunday, Feb. 23, at the GAC. It is estimated that 450 credit union officials attended the standing-room-only session.
At the follow-up meeting with NCUA, CUNA also discussed the need for meaningful regulatory relief, data security changes and examination concerns. The group raised issues regarding the agency's growing budget, which now stands at $268 million, and is almost exclusively funded by credit unions.
The agency was commended by the group for its announcement prior to the GAC that future Temporary Corporate Credit Union Stabilization Fund assessments are unlikely, as well as the highly successful efforts of the agency to pursue legal claims against large banking institutions that sold mortgage-backed securities to the five corporate credit unions that were taken over by NCUA in 2009.
Use the resource links to access CUNA's range of resources to help credit unions understand the impact of the RBC proposal on their operations.