ALEXANDRIA, Va.— NCUA will release its proposed rules on supplemental capital and field of membership in the fall.
“I understand the need for supplemental capital in certain circumstances,” said NCUA Chairman Debbie Matz during an online town hall meeting hosted by the agency. “So as part of modernizing risk-based capital, I am committed to counting supplemental capital in full…The proposed rule should be released for public comment before the end of the year. The effective date would coincide with implementation of risk-based capital in 2019, so supplemental capital and risk-based capital would go hand in hand.”
The agency has assembled working groups for supplemental capital and field of membership rules, soliciting input from CUs across the country. The agency did not say when in the fall the proposals would be released.
“This fall, we’re planning to propose a rule within NCUA’s authority to expand consumer access to federal credit unions. The rule will be designed to broaden community charters, enhance occupational charters and streamline processes for federal credit unions to add new members,” said Matz.
Other webinar highlights:
- As CUToday.info reported earlier, Larry Fazio, director of the NCUA’s Office of Examination and Insurance, said the NCUA will likely make a “small” repayment to the U.S. Treasury from the Temporary Corporate Credit Union Stabilization Fund. The NCUA owes the Treasury roughly $2.6 billion, and Fazio said the agency would still owe more than $2 billion after the payment.
- As he said during last week’s board meeting, Fazio noted that potential stabilization fund refunds in 2020 or 2021 depend on how the agency can monetize or dispose of the assets. If they are sold on the open market, the money could be available sooner, but refunds will be on the lower end of the projections. Higher refunds could take longer to get, perhaps as far as 2038, Fazio said.
- Matz said the NCUA’s quest to acquire third-party vendor authority is "a long way off."
- An NCUA website for capturing member complaints will be live by early September, said Gail Laster, director of the NCUA’s Office of Consumer Protection.
Going forward, the NCUA will be looking at Bank Secrecy Act compliance, de-risking and liquidity levels in the credit union system over the next 12 to 24 months.