NCUA to unveil new RBC proposal Jan. 15
WASHINGTON (1/9/15)--It's official. Credit unions will get their first look at a revised regulatory risk-based capital (RBC) plan from the National Credit Union Administration next Thursday. The new plan will be unveiled at the Jan. 15 open board meeting, according to an agenda released by the agency Thursday.
The revised proposal will come out almost a year after the NCUA first proposed a RBC regime, one that met with a serious outcry from stakeholders, federal lawmakers and more.
Jim Nussle, Credit Union National Association president/CEO, thanked the NCUA Thursday for slating the RBC discussion for the January meeting.
"CUNA will review and carefully evaluate the second risk-based capital proposal from the NCUA at the agency's Jan. 15 board meeting," he said. "We remain deeply concerned regarding several aspects of the original risk-based capital proposal.
"We know some of the concerns we raised in our comment letter are being considered in the second proposal, including, but not limited to: the 10.5% requirement to be well capitalized, risk weights, ensuring a second comment period and the allotted time for the implementation period."
Nussle added, "We hope the agency will adequately address our concerns given the significance to the credit union system and the feedback that the agency received from both the credit union movement and policymakers."
In the video below, CUNA Chief Policy Officer Bill Hampel and Deputy General Counsel Mary Dunn discuss RBC issues facing credit unions.
CUNA, noting the NCUA's continuing strides to increase transparency, has requested the agency look into cost-efficient ways to live-stream discussions as important to the credit union movement as the RBC proposal, and then going forward for all public meetings. The NCUA has stated that increased transparency is an agency priority.
As announced Wednesday, CUNA has organized a Jan. 26 webinar to detail and discuss the new RBC proposal and answer questions as time permits. (See related story: Registration open for CUNA's RBC2 webinar.)
The webinar, titled "Update on NCUA's Risk Based Capital Proposal," is scheduled for Jan. 26 at 1 p.m. (ET).
Other items on the NCUA's agenda next week are:
- The NCUA's 2015-2016 annual performance plan;
- Proposed rule on NCUA regulations part 702, Subpart E, capital planning and stress testing schedules; and
- A community charter request for 360 FCU, Windsor Locks, Conn., with $217 million in assets.
The closed portion of the meeting, which usually takes place after the open meeting, has been moved to 8:30 a.m. Jan. 15. The open meeting is scheduled to begin at 10 a.m. (ET).