WASHINGTON—CUNA has submitted its comment letter in response to NCUA's risk-based capital proposal, arguing the rule in its current state is functionally unnecessary.
“RBC places significant unnecessary burdens on credit unions and needlessly coerces credit union asset allocations—all at a significant cost to credit union members,” the letter reads. “Should the agency choose to forego common-sense restraint and pursue the RBC rule as re-proposed, CUNA urges meaningful change.”
The rule would delay the effective date of the rule by one year, to Jan. 1, 2020. It would also raise the asset threshold for defining a complex credit union to $500 million, up from $100 million. According to NCUA, this means 90% of credit unions would be exempt from the rule.
CUNA said it continues to support legislative efforts to delay the effective date of the rule for a period of two years, until January 2021.
The NCUA board unanimously issued its RBC proposal at its August meeting. Comments are due Sept. 7