May 28 is Comment Deadline on NCUA Risk-Based Captial Plan

Posted by Marissa Anema Thursday, February 27, 2014 10:43:00 AM

WASHINGTON – May 28 is the public comment deadline for the risk-based capital plan proposed by the NCUA earlier this month, according to a document published in the Federal Register.

CUNA is urging credit unions to weigh-in on the proposal and let regulators know their concerns regarding the risk-based approach to capital.

CUNA, as reported, has also encouraged the agency to hold public hearings that, in combination with the important step of comment letters, it says will produce an official record of discussions between credit unions and NCUA leadership that could do much to assist the NCUA board in determining the best path for proceeding on the rule.

CUNA supports a modern risk-based capital system for credit unions—in fact, CUNA President/CEO Bill Cheney declared that from the podium in front of 4,400 credit union advocates in Washington, DC this week for the association's 2014 Governmental Affairs Conference.

"What we don't support is layering additional capital requirements on top of our one-size-fits-all outdated system of prompt corrective action," he said.

CUNA has also voiced concerns about credit unions' capital buffers. The association has executed a detailed analysis that indicates the proposed risk-based capital rule would require credit unions to add a combined $10.5 billion to their capital just to maintain the levels that they have now to retain current margins above proposed "well capitalized" thresholds.

CUNA has produced an "Inside Exchange" video segment on the steps for writing an effective comment letter on this issue.

Credit unions can use CUNA’s “Risk Based Capital Action Center” available online at to directly write NCUA on the proposed rule. 


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