WASHINGTON–The House has passed a bill containing a provision that delays implementation of NCUA’s risk-based capital rule.
The legislation, which delays the effective date of the RBC rules to Jan. 1, 2021 from Jan. 1, 2019, has the backing of both credit union trade associations.
The provision to delay was included in the Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841), which passed by a margin of 400-2.
“CUNA and credit unions have well-founded concerns about NCUA’s risk-based capital rule, primarily whether or not NCUA even has the legal authority to issue such a rule,” said CUNA president/CEO Jim Nussle. “We continue to maintain that the risk-based capital rule is a solution in search of a problem, and support Congressional efforts to delay the rule.”
CUNA said it has now reached out to the Senate Banking Committee urging its leadership to consider drafting legislation that would also delay the risk-based capital rule.
"NAFCU thanks Representatives [Robert] Pittenger, [Bill] Posey, [Denny] Heck and Chairman [Jeb] Hensarling for their bipartisan efforts on this RBC-delay provision and for all House members that voted in support of the measure," said NAFCU President and CEO Dan Berger. "We have sought relief from this rule since it was finalized, and we are pleased to see this provision gaining traction as lawmakers recognize the negative impact this rule would have on the credit union industry."