Credit Union National Association (CUNA) officials said the organization supports the National Credit Union Administration (NCUA) board voted to approve a final risk-based capital rule.
CUNA officials said the action secures important regulatory relief for credit unions and maintains an appropriate focus on safety and soundness while delaying implementation of the risk-based capital rule by one year, to Jan. 1, 2020.
The rule also affords credit unions additional time to comply and raise the threshold for risk-based capital compliance to $500 million in assets, exempting 90 percent of credit unions from the rule.
“We thank the NCUA board for passing its risk-based capital final rule and hope Chairman (John Mark) McWatters and Board Member (Rick) 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,” Ryan Donovan, CUNA chief advocacy officer, said. “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.”
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 operation guidelines.