RALEIGH, N.C. (9/19/14)--John Radebaugh, president/CEO of the Carolinas Credit Union League (CCUL), has written to the National Credit Union Administration to request a second comment period on the agency's risk-based capital (RBC) proposal.
In his letter, sent earlier this week, Radebaugh expressed CCUL's support of a more comprehensive RBC effort but said the current proposal could "negatively impact the credit union system by jeopardizing member access to competitive and safe financial products and services."
The letter cites the more than 2,000 comment letters received by the NCUA, including those from more than 350 members of Congress. It also mentions the agency's previously stated willingness to revise risk weightings, which could have an impact on credit unions' strategic planning.
"Through the comment period and beyond, the NCUA has responded to inquiries, acknowledged necessity of changes to the revised rule and participated in ongoing conversations with credit union stakeholders, actions that indicate NCUA's awareness that revisions to the RBC rule will have a significant impact on the industry," Radebaugh wrote. "Given the strength of the credit union system, there is no dire need for rapid adoption of a final risk-based capital structure."
The CCUL believes that the issuance of a supplemental rule with a comment period would be "most appropriate" and in the best interest of the credit union system.