Matz Committed to “Warranted” RBC Changes
September 26, 2014
September 26, 2014
In a written response to concerns about proposed risk-based capital (RBC) rules raised by Rep. George Holding (R-N.C.), NCUA Chair Debbie Matz has said that she is committed to making warranted changes to the proposed rule.
Holding, a former U.S. attorney, wrote a letter to the NCUA earlier this month encouraging the agency to open a second comment period on the proposed RBC rule, and questioned the NCUA’s authority to enact the rule.
In her response this week Matz wrote, “I want to assure you that I am fully committed to making changes and clarifications to the proposed rule, where warranted and based on all the comments received, to produce good public policy.”
Matz said that the NCUA “is aware of the stakeholder interest in holding a second comment period.” She said that the determination about whether to open a second comment period will be made by the NCUA’s general counsel, depending on changes made to the proposed rule. Because the changes are still in development, she said, it’s too early to tell whether a second comment period will be warranted.
Matz also laid out the agency’s process and thinking in developing the proposed rule, and said that only about 3 percent of federally insured credit unions, or 201 credit unions, would be affected by the current proposal. “In working to revise the proposed rule, I anticipate that the final rule will affect even fewer credit unions because of changes we will make to the risk weights and other provisions of the proposed rule.”
This letter comes shortly after new NCUA board member Mark McWatters told senior CUNA staff that he would not vote in favor of any RBC proposal that does not include a second comment period.
NCUA staff confirmed for Anthem that McWatters supports a second comment period because of the bipartisan support given to credit unions’ concerns about the proposed RBC rule.
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