ARLINGTON, Va.–The NCUA board’s decision to again delay its risk-based capital (RBC) proposal until 2022 should allow time for a couple of key questions to be addressed, according to NAFCU.
Carrie Hunt, EVP and general counsel with NAFCU, said those two questions include whether NCUA can create the same sort of “offramp” currently available to banks, as well as another question on how goodwill is counted.
In addition to those two issues, Hunt said there remain questions related to delays by FASB in CECL as well as NCUA’s own supplemental capital proposal, which is expected in the near future.
“All of these are separate, but they are also all related, as credit unions have only one balance sheet,” said Hunt.
During the most recent NCUA board meeting, Board Member J. Mark McWatters indicated he was voting in favor of the delay only because agency staff had said an “expanded suite of rules” that would include subordinated debt options is on its way for consideration.
Other Issues
Other issues also addressed by Hunt:
- As CUToday.info reported, credit unions scored a much-sought victory when language giving banks equal access to military bases as credit unions currently enjoy was dropped from the final version of the national Defense Authorization Act. But Hunt confirmed the issue could always return in legislation in the next Congress.
“But we also think there is a little better understanding now by (members of Congress) around this issue,” said Hunt, adding that if the Department of Defense believes the base access issue needs to change, it can do so on its own. “There doesn’t need to be a legislative fix,” said Hunt.
- Looking to 2020, Hunt said NAFCU’s priorities will be similar to those of 2019, including regulatory relief, and a strong growth agenda. Hunt noted NAFCU has also “done a lot of work” this year around the issue of privacy and data security, which will remain a focus.