NCUA to Discuss RBC2 Final Rule at October 15 Meeting

Reporting From CUNA News Now

A final vote on the National Credit Union Administration’s revised risk-based capital (RBC2) proposal is on the agenda for the agency’s Oct. 15 meeting. The agenda names three other items for consideration, including permissible investment activities.

The agency issued RBC2 in January after its original proposed rule was introduced last year. CUNA noted roughly 25 key improvements over the agency’s first risk-based capital proposal. These include:

  • Limiting the scope of the proposal by increasing the asset threshold to $100 million;
  • Lowering the risk-based capital requirement for well-capitalized credit unions;
  • Improving risk weights;
  • Permitting goodwill in supervisory mergers to be included in risk-based capital; and
  • Delaying compliance until Jan. 1, 2019.

NCUA Chair Debbie Matz, in a letter sent to legislators Thursday, said “the final risk-based capital rule will be calibrated to affect only a few dozen credit union outliers not carrying sufficient capital to match the risks on their balance sheets.” CUNA requested the NCUA make those calibrations.

CUNA made a number of other suggestions in its comment letter, including:

  • The new proposed capital adequacy provisions beyond net worth and risk-based capital ratio requirements should be dropped;
  • The identification of “complex” credit unions should be based on something more than asset size, and should include only credit unions with at least $500 million in assets; and
  • Implementation should be delayed until 2021, to coincide with expected refunds from the Temporary Corporate Credit Union Stabilization Fund.

The other items on the agenda include the proposed rule on permissible investment activities-bank notes, delegations of authority for the approval of community charter requests and a quarterly update on the National Credit Union Share Insurance Fund.

The NCUA has indicated that it will issue proposals on field of membership and supplemental capital by the end of this year.

For more coverage of Matz’s letter sent to legislators Thursday, see “Matz promises to be responsive to Reps. on RBC2” in CUNA News Now.

Questions about this story? Contact James Pearson: 206.340.4790,


Posted in Advocacy News, CUNA, NCUA.