HFSC likely to markup bill w/ provision delaying RBC rule
The House Financial Services Committee is expected to mark up a bill next week that contains a provision delaying the effective date of NCUA’s risk-based capital rule by two years. CUNA supports this provision, and has previously backed legislation to repeal or delay the rule.
“CUNA has maintained since NCUA first proposed the risk-based capital rule that it is a solution in search of a problem, so we support any legislative means to reduce the rule’s impact on credit unions,” said CUNA Chief Advocacy Officer Ryan Donovan.
The bill itself would make changes to the Committee on Foreign Investment in the United States, a Treasury-led panel tasked with reviewing foreign mergers or acquisitions of U.S. companies for national security concerns.
A provision added to the bill would delay implementation of NCUA’s rule to January 2021, a push back of two years from the current effective date of January 2019.
NCUA’s risk-based capital rule, finalized in October 2015, would create risk-based capital standards for the purpose of determining whether a credit union is well-capitalized.