McWatters Favors Secondary Capital, Working Group Formed
December 11, 2014
December 11, 2014
National Credit Union Administration Board Member Mark McWatters confirmed to CUNA this week that he supports including supplemental capital in the agency’s risk-based capital (RBC) proposal, which is expected to be unveiled on January 15.
McWatters, speaking to members of the New Jersey Credit Union League at the NCUA’s headquarters, said he would support a provision within the RBC proposal that would allow credit unions to access more sources of capital.
“Credit unions need a greater ability to raise capital in a modern financial system, and the entire NCUA board has stated their support for legislative reform,” said John Trull, director of regulatory advocacy for the NWCUA. “Board Member McWatters has gone even further by publicly supporting a risk-based capital provision that would allow the NCUA to treat supplemental capital similarly to how Tier 2 capital is treated by other financial regulators.”
“Advocates are working on multiple fronts to gain the support of NCUA Board Member Rick Metsger and Chair Debbie Matz,” Trull added, “producing compelling policy reasons and laying out the statutory obligation the agency has to include supplemental capital in the RBC proposal.”
At the NCUA’s open board meeting this morning, Matz announced a new working group on secondary capital, as well as another working group to explore field of membership issues.
CUNA President and CEO Jim Nussle called the announcement “a significant and welcome development.” Nussle continued, “There is much work to do here and CUNA is ready to roll up sleeves and help move regulatory improvements forward.”
The new RBC proposal is expected to be presented for a 90-day comment period at the NCUA’s January 15 board meeting.
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