WASHINGTON–Both CUNA and NAFCU have issued statements in follow-up to NCUA’s announcement that it will release its revised risk-based capital proposal in January for a 90 day-comment.
"We appreciate that Chairman Matz intends to support a 90-day comment period, which is consistent with how we thought this process would work, and we will be urging the other members of the board to support this approach,” said CUNA CEO Jim Nussle. “CUNA looks forward to seeing the details of the revised rule when it is proposed. We plan to be an active participant in what we hope will be an open process that will fully examine the effect the revised proposal will have on credit unions.”
In its statement, NAFCU noted it has been strongly urging that credit unions have an opportunity to thoroughly review and submit comments to the agency on any changes made to the RBC proposal before it is issued in final form. NAFCU said it plans to closely scrutinize the revised RBC proposal for changes in a number of areas that it has flagged as being particularly troublesome for credit unions.
“During the six months since the comment period closed on the original proposed rule, we’ve taken the time to carefully review and methodically evaluate the many thoughtful comments received from stakeholders,” said NCUA Chairman Debbie Matz. “We’ve also considered the input received during three Listening Sessions across the U.S. this summer. We’re getting closer to issuing the revised proposed rule, which I now anticipate will be presented in January 2015—one year since the original proposed rule.
“To provide the public ample time to review this important safety and soundness rulemaking, I intend to support a 90-day comment period,” Matz stated.
Based on stakeholder comments, the amended proposal 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. Stakeholders will also be invited to comment on an alternative approach for addressing interest rate risk using the supervisory process.