WASHINGTON—The House Financial Services Committee has approved by a vote of 33-25 legislation to repeal the NCUA's risk-based capital (RBC) rule, which is set to go into effect Jan. 1, 2019. The bill, sponsored by Rep. Bill Posey (R-FL) now awaits action by the full House.
"NAFCU thanks Rep. Posey, and committee Chairman Jeb Hensarling, NCUA Chairman J. Mark McWatters, and members of the House Financial Services Committee who have acknowledged the negative impact the current RBC rule would have on credit unions," said NAFCU President and CEO Dan Berger. "If the RBC rule is allowed to take effect as written, more than 400 credit unions would see a decline in their capital cushions. We look forward to working with the NCUA to craft an RBC system that is better suited to the credit union industry."
Ahead of the committee mark-up, which began Tuesday, Berger sent a letter urging members to support the bill, the Common Sense Credit Union Capital Relief Act of 2017 (HR 4464).
NAFCU said it supports an appropriate RBC system for credit unions. Over the past three years, the association has consistently opposed the NCUA's RBC rulemaking and urged its withdrawal because of the adverse effects it would have on the credit union industry – particularly as a result of regulatory burdens and costs.
The committee on Wednesday also approved of two other bills, NAFCU reported:
- The Financial Institutions Examination Fairness and Reform Act (HR 4545), by a vote of 50-10, which would set standards for examination fairness for federal financial institution regulators, including the NCUA, including clear guidance from regulators, consistency from exam to exam, timeliness of reported exam results and an independent appeals process free of examiner retaliation
- The Making Online Banking Initiation Legal and Easy (MOBILE) Act of 2017 (HR 1457), by a vote of 60-0, which would establish requirements for financial institutions to use and electronically store a person's driver's license or ID card information at account opening, or when other financial services are provided, to prevent fraud or other criminal activity