WASHINGTON—Having had time to begin digesting it, CUNA said it is focusing on four specific areas of NCUA’s revised risk-based capital proposal.
A first area of focus, according to CUNA Deputy General Counsel Mary Dunn, is risk weights. While those risk weights have been reduced in most cases from the original proposal, CUNA questions whether those reductions are enough.
“Are those risk weights precisely where they need to be?” asked Dunn.
CUNA is also focused on the proposal requiring complex credit unions to have a capital adequacy plan. “We are looking at that in great detail to see what the impact of that would be,” said Dunn.
Dunn noted that NCUA is addressing interest rate risk separately, but also asked for comments within the context of prompt corrective action. “We are looking closely at what the impact of that could be and should be. Also, NCUA did not include supplemental capital authority in the context of risk-based capital, so we are looking at that very closely, as well.”
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