Matz Confident NCUA Will Produce a “Sensible” RBC Rule

After hosting more than 400 credit union professionals at three listening sessions this summer, and reviewing more than 2,000 official comment letters, National Credit Union Administration Chair Debbie Matz says she is “confident that NCUA will produce a sensible final rule that meets the requirements of the Federal Credit Union Act and not disadvantage credit unions in the market.”

A delegation of Northwest credit union executives attended the listening session hosted in Los Angeles last month. The Northwest Credit Union Association submitted an official video and filed a comment letter with the regulator, and three dozen Northwest credit unions filed comment letters suggesting significant changes to the proposal.  The video, comment letters and other resources can be reviewed on the NWCUA’s Risk Based Capital online resource center.

“Many valid questions and concerns were raised about our proposed rule,” Matz said. “We are listening carefully, and I anticipate the agency will make appropriate changes. For starters, we plan to lower the risk weights on investments, mortgages, member business loans, credit union service organizations and corporates, as well as extend the implementation period.”

Extending the implementation period beyond the 18 months initially proposed, Matz noted, would allow any affected credit unions sufficient time to adjust their operational plans and balance sheets, and give the regulator time to update the Call Report system and train field examiners.

Matz noted the final rule is likely to include policy that only NCUA’s Board, not individual credit union examiners, will be able to determine whether a specific credit union needs to hold more capital in “extraordinary situations.”

“This is our last significant safety and soundness rule arising from the financial crisis,” Matz said. “NCUA appreciates the thoughtful input from stakeholders from the comment process as well as the 2014 listening sessions.”

Questions about this story? Contact Lynn Heider: 503.350.2225,

Posted in Advocacy News, Federal, NCUA.