ARLINGTON, Va.—NAFCU is calling on NCUA to release more information and “greater detail” about what the “agency’s plans and initiatives to address perceived risks in the credit union system.”
In a letter to the agency from President/CEO Dan Berger, NAFCU notes that over the past several years NCUA has proposed or finalized rules, and made legislative requests seeking to mitigate perceived risks within credit unions, including the current proposal on risk-based capital and its recent final rule on emergency liquidity.
“Taken all together, these initiatives have, and will continue to, impose undue regulatory burden on credit unions all in an effort to address the same perceived risk,” Berger wrote. “While NAFCU and our members acknowledge the importance of safety and soundness in the credit union system, we firmly believe that NCUA needs to more fully outline its long-term strategy and goals, as credit unions are currently unable to fully analyze the impact of the agency’s initiatives without knowing NCUA’s ultimate goals for mitigating perceived risk. We strongly believe that credit unions are entitled to know NCUA’s overall design for addressing perceived risk within the credit union system.
“Specifically, NAFCU requests that the agency disclose how its current proposal on risk-based capital, its recent final rule on emergency liquidity, and its supervisory attention to interest rate risk fit in to NCUA’s long-term risk mitigation plan,” Berger continued. “Further, NAFCU asks that NCUA share its anticipated timeline for proposing and implementing any new rules or guidance that would seek to address risk in the credit union industry.”