ALEXANDRIA, Va.—The NCUA board will consider a final risk-based capital rule, the agency’s 2020-21 budget and will receive a briefing on the 2020 share insurance fund Normal Operating Level (NOL) at its Dec. 12 meeting.
As CUToday.info reported, NCUA proposed earlier this year to delay implementation of the RBC rule to Jan. 1, 2022, back from the currently scheduled Jan. 1, 2020. The rule would apply to credit unions of more than $500-million in assets.
CUNA said it supports the delay, but continues to maintain the rule is a solution in search of a problem.
Concerns Over Budget
As proposed, the NCUA's 2020 and 2021 budgets estimate $316.2 million and $325.9 million in spending, respectively. The agency's proposed 2020 operating budget represents a 57% increase in NCUA's budget over the past decade, while the industry has seen a 32% reduction over the same period, NAFCU noted.
NAFCU has shared its concerns that NCUA properly manage credit union funds throughout the budgeting process
CUNA has supported NCUA’s budget process, but has also raised some concerns on the budget. CUNA has also encouraged NCUA to issue additional share insurance fund distributions whenever possible, and to continue phasing down the NOL to 1.30% by 2021.
The meeting will begin at 10 ET Thursday. CUToday.info will provide complete coverage.