ALEXANDRIA, Va.—Mark McWatters is in favor of including supplemental capital in the agency's risk-based capital proposal. The NCUA board member confirmed that to CUNA Wednesday, the trade association reported.
NCUA is expected to reissue its risk-based capital proposal for a 90-day comment period at its Jan. 15 board meeting. McWatters told CUNA he would support a provision within the RBC proposal that would allow credit unions to access more sources of capital.
CUNA has been a proponent of allowing any federally insured credit union to use supplemental capital to meet RBC requirements, which could be permitted without statutory changes, CUNA explained. CUNA stated it also supports statutory changes to permit the use of supplementary capital to meet Tier I net worth requirements. Currently, only low-income designated credit unions may use supplemental capital for net worth requirements.
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