WASHINGTON—CUNA again shared its support for NCUA’s alternative capital proposal, emphasizing that under the rule supplemental capital will not only count towards the risk-based capital number for credit unions that are not low-income designated, but that it can count towards both RBC and statutory net worth for low-income credit unions.
As CUToday.info reported here, the NCUA board Thursday voted 2-0 in favor of issuing an advance notice of proposed rulemaking on alternative capital for federally insured credit unions.
“We were happy to see that proposal come out since NCUA has been promising to do that since they originally crafted the risk-based-capital rule,” said CUNA Senior Director and Counsel Andy Price. “This ANPR is a good step forward in starting this process and CUNA looks forward to providing NCUA with comments and helping them shape this rule.”
The proposal is out for a 90-day comment period, although it is uncertain how President Trump’s new regulatory freeze might impact the rulemaking.