Credit Union Journal - - Contents - BY NATHAN DICAMILLO

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.”

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