ALEXANDRIA, Va. (4/3/14, UPDATED 9:36 a.m. ET)--There will be an extended phase-in period for the final risk-based capital (RBC) rule in order to allow credit unions enough time to adjust risk profiles or capital levels, or both, and to ensure compliance with the new regulation, the National Credit Union Administration said today of its controversial RBC plan.
The NCUA just issued an announcement meant to remind parties interested in commenting on the agency's proposal that they have until May 28 to do so. In the release the agency also noted that after it approves a final rule, it will modify the Call Report to comply with the terms of a new rule and provide Prompt Corrective Action classifications accordingly.
The NCUA board approved the RBC proposal at its January open board meeting. The plan would apply to credit unions with assets greater than $50 million and assigns certain risk weights for different assets.
In mid-March, NCUA Chairman Debbie Matz wrote to Credit Union National Association President/CEO Bill Cheney--in response to CUNA's urgings that the agency scrap the plan or make significant changes--and at the very least allow for an extended phase-in period. She said key changes to the proposal are "not out of the question."
Matz added, "Just as NCUA incorporated significant changes to our final rules on troubled debt restructurings, loan participations and derivatives...I assure you NCUA will do so, as appropriate, on this critically important rule." (News Now March 11)
CUNA continues to urge credit unions to weigh in on the proposal to let regulators know their concerns. CUNA's RBC Action Center is a complete catalog of reference materials for credit unions and it also provides credit unions with a tool to send comment letters to the NCUA.