A new bill before Congress could restart the debate over the National Credit Union Administration’s riskbased capital rule, but the national credit union trade associations have differing opinions on the bill’s merits.
WASHINGTON—A BILL reintroduced in Congress could reopen the risk-based capital debate.
The Risk-based Capital Study Act of 2017 from Reps. Bill Posey (R-fla.) and Denny Heck (D-wash.) would require the National Credit Union Administration to perform further due diligence on its RBC rule before it takes effect in January 2019, including submitting that study to Congress, along with legislative recommendations on how to improve the CU capital system.
NCUA did not have comment on the bill’s reintroduction, which came during the National Association of Federally-insured Credit Unions’ annual Congressional Caucus.
“The reintroduction of the bill is saying we realize there are still issues that need to be resolved,” said Brad Thaler, NAFCU’S VP of legislative affairs.
While NAFCU cheered the bill, the Credit Union National Association was less enthusiastic.
“CUNA appreciates Reps. Posey and Heck for their concern regarding credit unions,” said CUNA Public Affairs Director Vicki Christner. “However, we’re not sure now is the time for this legislation given that NCUA Chairman Mcwatters announced during the CUNA GAC that one of the agency’s top priorities to address regulatory reduction was revisiting the risk-based net worth regulation and other needlessly burdensome rules.”