ARLINGTON, Va.—The credit union trade groups are both pressing NCUA for changes to its proposal on capital planning and stress testing.
NAFCU said it does not support aspects of NCUA’s proposal to amend Part 702 of the agency's regulations on those requirements, saying the rule’s main result is simply additional regulatory burden.
In a comment letter to NCUA, NAFCU Director of Regulatory Affairs Alicia Nealon outlined the areas that concern the trade association.
"While NAFCU recognizes that the health of the National Credit Union Share Insurance Fund (NCUSIF) is essential for the credit union industry, and stress testing and capital planning are important tools for credit unions to assist in proper management, we believe that the capital planning and stress testing rule does little to enhance the security of the NCUSIF. Instead, the rule adds an additional regulatory burden on credit unions."
Nealon added, "Given that the covered credit unions survived the recent financial crisis without the need for additional NCUA stress testing and oversight, NAFCU and our members believe NCUA failed to demonstrate how the 2014 rulemaking is worth the cost to the rest of the credit union industry."
CUNA also weighed in with its letter, stating that credit unions need more time to complete the stress testing requirements than the proposed rule would allow.
“Restoring the time between the ‘as-of-date’ and the capital plan due date to five months, and pushing out the rest of the dates by one month should give credit unions sufficient time to fulfil NCUA’s stress testing requirements. If you have any questions about our comments, please do not hesitate to contact me,” said J. Lance Noggle, senior director of advocacy and counsel.