NCUA Board Chair to Request Revised Proposed Risk-Based Capital Rule Be Issued with New Comment Period

September 30, 2014 NCUA Board Chair Debbie Matz announced Monday that, “as a result of significant structural changes being considered,” she intends to request that a revised proposed risk-based capital rule be issued for additional public comment.

The amended proposal, based on stakeholder comments, will include a longer implementation period and revised risk weights for mortgages, investments, member business loans, credit union service organizations and corporate credit unions, among other changes. The NCUA also noted that stakeholders “will also be invited to comment on an alternative approach for addressing interest rate risk using the supervisory process.”

Matz said the amended proposal could be issued before the end of 2014.

NASCUS President and CEO Mary Martha Fortney was pleased that the NCUA provided for an additional comment period. “It will give stakeholders another opportunity to provide input on this important rule,” she said.

NASCUS’ comment letter addressed the need for the NCUA to include supplemental capital for non-low income consumer credit unions within its proposed risk-based regulatory framework, and believes more consultation with state regulators would resolve many of the issues that the proposed Risk-Based Capital Rule brings.

NASCUS’ comments focus on ensuring that the rule is right-sized for the credit union industry, reflect reasoned judgment of the actual risks, maintain predictable standards that support credit union growth and innovation, and cement the current commitment by NCUA to consult and coordinate with state regulators.


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