RALEIGH, N.C.—The CU community has widely speculated what NCUA’s revised proposed risk-based capital rule will hold. As the agency prepares to deliver the new proposal Thursday at its standing-room-only open board meeting, Jim Blaine outlined key content the rule must contain.
The president of the $29-billion State Employees' Credit Union told CUToday.info that credit unions should “expect to see five core items” in the new RBC rule:
- Risk weights equivalent to banking industry standards
- Supplemental capital for all credit unions
- Retention of the statutory definitions of net worth and a complex credit union
- Deletion of the individual minimum capital requirement provision
- A mandate for regulatory transparency
“Credit unions should seek legislation in this Congress for any core item NCUA omits,” stated Blaine, adding that capital requirements are a “crucial element of credit union operations. They should be well-defined legally and not be subject to mood swings or pique at the NCUA.”
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