Advocacy on the Move
NCUA Delays Risk-Based Capital Rule Until 2022.
June 20, 2019
The National Credit Union Administration voted 2-1 Thursday to suspend the effective date of the risk-based capital rule until Jan. 1, 2022. This marks the second delay since the rule was approved originally in October of 2015. Last year, NCUA delayed implementation from Jan. 1, 2019 until Jan. 1, 2020.
“This is an appropriate time to consider additional improvements to the risk-based capital rule,” NCUA Board Chairman Rodney E. Hood said. “We have a strong economy, and credit unions are very well-capitalized, with a net worth above 11 percent. As a regulator and steward of the National Credit Union Share Insurance Fund, I am committed to a system of prudent capital standards as required by the Federal Credit Union Act.”
Your Association appreciates the decision.
“This gives the NCUA time to consider solutions providing credit unions with more access to capital including subordinated debt, capital requirements for asset securitization, and alignment with the community bank leverage ratio,” NWCUA Vice President, Regulatory Advocacy John Trull said.
Posted in Advocacy on the Move.