WASHINGTON (6/23/14)--More heavy hitters from Capitol Hill have weighed in with concerns about the National Credit Union Administration's proposed risk-based capital proposal. The chairman of the House Financial Services Committee and a second high-ranking member of that panel submitted a letter Friday.
At issue is the NCUA proposal that would impose on credit unions with greater than $50 million in assets new standards that would restructure the agency's current "prompt corrective action" regulation to involve calculation of a capital-to-risk-assets ratio.
Rep. Shelley Moore Capito (R-W.Va.), who heads the House Financial Services subcommittee on financial institutions and consumer credit, and Rep. Jeb Hensarling (R-Texas), who chairs the parent financial services panel, joined forces Friday to ask the federal regulator to consider whether its proposed risk weights--which deviate markedly in some areas from the standards banking regulators have applied for banks--are appropriate.
The letter asks the NCUA to: