ALEXANDRIA, Va. (11/20/14)--National Credit Union Administration board member J. Mark McWatters highlighted a list of issues he intends to scrutinize when the agency issues a revised proposed rule on a risk-based capital (RBC) regime for credit unions.
In a column in this month's The NCUA Report, McWatters said review and analysis of the NCUA's RBC proposal was one of his top priorities upon being sworn into his post at the agency this summer.
While the revised proposal is being put together, McWatters said he is continuing to assess:
McWatters cited the more than 2,000 comments the agency received, including those from more than 350 members of the U.S. Congress, as an indicator that the proposal "merits substantial revision."
The revised RBC plan is not on today's open board meeting agenda, and while there is one more chance for the agency to get the new plan out before the end of the year--at the December meeting--some observers say it won't be a shock if it is not made public until the new year.
In September, the agency changed course and said that the changes to the proposal would be significant enough to reissue the revised version for a public comment period.
"I am pleased the chairman and vice chairman have agreed to a new comment period for a revised risk-based capital rule, as it is important we listen to the needs and perspectives of the credit union community," McWatters wrote.
"Many challenges remain for credit unions and NCUA in working through these issues," he wrote. "As we move forward to meet those challenges, we must do so in a thoughtful manner."
McWatters' concerns are consistent with concerns raised by the Credit Union National Association during the comment period. CUNA Deputy General Counsel Mary Dunn commended McWatters for his willingness to look beyond NCUA staff analysis.
Among issues raised by the CUNA, the state credit union associations and credit unions during the initial comment period that ended in May were: