ALEXANDRIA, Va.—NCUA Chairman J. Mark McWatters, in a letter to Reps. Bill Posey (R-FL) and Denny Heck (D-WA), said the NCUA plans to consider a rule Thursday that would delay the agency's
risk-based capital (RBC) rule by one year.
In addition to a one-year delay, McWatters in his letter said that the proposal would raise the definition of a “complex” credit union from $100 million to $500 million. McWatters also indicated the proposal would be out for a 30-day comment period.
Both credit union trade associations have been actively lobbying NCUA and Congress in support of delaying the effective date due to the negative impact the rule could have on credit unions. Several bills currently before Congress include a provision that would delay the RBC rule until Jan. 1 of 2021 from the current date of Jan. 1, 2019.
“The NCUA’s proposed delay and reconsideration is incredibly positive, and NAFCU looks forward to a right-sized rule for credit unions,” said NAFCU President and CEO Dan Berger.
The NCUA board will discuss the proposed RBC rule during its meeting Thursday, slated to begin at 10 a.m. ET. CUToday.info will provide complete coverage.