CUNA thanks NCUA board for passage of RBC reg. relief
The NCUA board voted to approve a final risk-based capital rule Thursday, that provides regulatory relief for credit unions. While CUNA has concerns with NCUA’s overall approach to risk-based capital, it supports the changes to the effective date and threshold for compliance.
“We thank the NCUA board for passing its risk-based capital final rule, and hope Chairman McWatters and Board Member 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,” said CUNA Chief Advocacy Officer Ryan Donovan. “While CUNA supports a longer delay and other substantive modifications to the rule, the proposal’s changes are important and will provide relief, and NCUA deserves credit for this targeted regulatory relief.”
Specifically, the rule will delay implementation of the risk-based capital rule by one year, to Jan. 1, 2020, and raise the threshold for risk-based capital compliance to $500 million in assets.
The rule will be effective 60 days after its publication in the Federal Register, which is expected in the coming days.
During his remarks regarding the RBC proposal, Board member Metsger mentioned that the agency can now turn its attention to developing a rule on alternative capital. Metsger noted that he anticipates an alternative capital rule that will have an effective date that coincides with that of RBC.
The board also approved a proposed rule that makes several amendments to Federal Credit Union Bylaws, designed to update, clarify and simplify federal credit union bylaws.
The proposed changes include:
- Incorporation of legal opinions issued by the NCUA’s Office of General Counsel into the text of the Federal Credit Union Bylaws; and
- Removal of outdated or obsolete provisions.
The proposed rule also provides additional guidance to federal credit unions in the form of official staff commentary included at the end of the Federal Credit Union Bylaws