Donovan thanks NCUA for RBC work, says add’l work needed
The NCUA board deserves thanks for its work on risk-based capital, but more work is needed, CUNA Chief Advocacy Officer Ryan Donovan wrote in Credit Union Times Tuesday. The board is scheduled to vote on the final RBC rule at its Thursday meeting.
“The NCUA’s proposed rule is good, albeit imperfect. It would provide credit unions additional time to comply with the RBC rule, and, most importantly, it would narrow the focus of the rule, exempting 90% of credit unions,” Donovan wrote. “While CUNA supports a longer delay and other substantive modifications to the rule, the proposal’s changes are important and will provide relief.”
Donovan thanked NCUA Chairman J. Mark McWatters and board member Rick Metsger for working through different stances on risk-based capital to find “common ground to secure important regulatory relief” for credit unions.
“This type of smart, targeted regulatory relief should not be taken for granted,” Donovan wrote. “Instead, it should serve as a positive example about the importance of regulator-stakeholder engagement to service big-picture goals for the good of the credit union system and the 110 million Americans it serves.”
Donovan urged the board to pass the final rule Thursday, with the hope that McWatters and Metsger recognize there is more work to be done to “ensure the risk-based capital standard credit unions are subject to is appropriate to the risk profile of the system and consistent with federal law.”
He also noted that CUNA will continue to work with NCUA and Congress in the months ahead to work through concerns with NCUA’s general approach to risk-based capital.