Oct. 18, 2018

CONTACT: Shelton Roulhac, NASCUS Communications; sroulhac@nascus.org

NASCUS PRESIDENT AND CEO LUCY ITO
ON NCUA’S NEW SUPPLEMENTAL RISK-BASED CAPITAL RULE

NASCUS commends NCUA for delaying risk-based capital for one year, and on raising the rule's applicability threshold. We are also encouraged that the agency will begin work on a supplemental capital rule."

ARLINGTON, Va. – This morning, the NCUA Board approved a supplemental risk-based capital (RBC) rule implementing changes NASCUS sought on behalf of the state credit union system. The rule delays the implementation of the RBC rule for a year until January 2020 and increases the complex credit union threshold to credit unions with assets greater than $500 million.

The Board also made note of a forthcoming alternative capital rule with an implementation date potentially coinciding with the RBC rule’s effective date. 

NASCUS President and CEO Lucy Ito issued the following statements in response to today’s developments:  

On the delaying the implementation 

“We are pleased that the NCUA Board recognized that developing risk-based capital requirements is a complex endeavor that will affect credit unions and examiners, alike. Delaying the rule for one year will allow NCUA to develop risk-based capital guidance as well as a concomitant alternative capital rule and enable credit unions to prepare for compliance.” 

On the raising the applicability threshold to $500 million 

“NASCUS applauds the NCUA board for raising the threshold from $100 million to $500 million.  By raising the threshold, NCUA is providing much needed regulatory relief to smaller institutions without posing significant risk to the share insurance fund.”

On a forthcoming alternative capital rule

“NASCUS is encouraged that the implementation date of a potential alternative capital rule could coincide with the risk-based capital rule’s new effective date in 2020. We have long held that alternative capital should be a part of the risk-based capital framework because it could help protect the National Credit Union Share Insurance Fund from losses by encouraging credit unions to attract additional loss-absorbing forms of capital that they would otherwise forego. We will continue to engage with NCUA to secure this tool for credit unions.”

The National Association of State Credit Union Supervisors (NASCUS) is the primary resource and voice of the state governmental agencies that charter, regulate and examine the nation’s state-chartered credit unions. NASCUS membership is made up of state-chartered credit unions, state regulators and other supporters of the state credit union system. NASCUS is the only organization dedicated to the defense and promotion of the state credit union charter and the autonomy of state credit union regulatory agencies.