Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUNA executive committee presses RBC proposal concerns with NCUA chairman
WASHINGTON (2/28/14)--Following up on concerns voiced by credit unions at the Credit Union National Association's Governmental Affairs Conference (GAC) here this week, CUNA's Executive Committee and key senior staff discussed the National Credit Union Administration's risk-based capital (RBC) plan with agency chairman Debbie Matz and senior NCUA staff. The meeting also addressed other key areas of credit union concerns.

"This meeting afforded the group an important opportunity to raise directly to the chairman and her top staff the range of concerns that have already surfaced regarding the proposed capital rule," said CUNA Deputy General Counsel Mary Dunn, following the meeting.

The CUNA group focused on concerns, such as:
  • Whether the proposal is needed;
  • Various provisions in the proposal, such as authority for the agency to impose higher capital requirements on a case-by-case basis; and
  • A number of the risk weightings and directives regarding the calculation of the proposed risk-based capital ratio. 
"Credit unions have zeroed in on the exclusion of the National Credit Union Share Insurance Fund 1% deposit and goodwill in calculating the RBC ratio under the proposal. The need for legislative authority for supplemental capital and prompt corrective active reform was also highlighted in this meeting," Dunn reported.

The discussion of risk-based capital with Matz reflected concerns raised by credit union officials at the special session on the proposal held by CUNA held Sunday, Feb. 23, at the GAC.  It is estimated that 450 credit union officials attended the standing-room-only session.

At the follow-up meeting with NCUA, CUNA also discussed the need for meaningful regulatory relief, data security changes and examination concerns. The group raised issues regarding the agency's growing budget, which now stands at $268 million, and is almost exclusively funded by credit unions.
 
The agency was commended by the group for its announcement prior to the GAC that future Temporary Corporate Credit Union Stabilization Fund assessments are unlikely, as well as the highly successful efforts of the agency to pursue legal claims against large banking institutions that sold mortgage-backed securities to the five corporate credit unions that were taken over by NCUA in 2009.

Use the resource links to access CUNA's range of resources to help credit unions understand the impact of the RBC proposal on their operations.
RSS





print
News Now LiveWire
Sony hack linked to N. Korea, says U.S.intelligence via @nytimes http://t.co/fE3PtMgEFz
11 hours ago
.@CUNAMutualGroup Klewin shares final thoughts, forecast on lending regulations with @cumagazine before retiring http://t.co/v78QY3QwqB
14 hours ago
Current @CUNA COO @JillTomalin promoted to deputy chief of staff
15 hours ago
#CU Effect:@ChartwayFCU 'branch of the future' 2 benefit members, staff. 2nd installment of new News Now series here:http://t.co/ImBY4nupEj
16 hours ago
U.K. regulators have given formal authorization for the @c_of_e to form a #creditunion.
16 hours ago