The National Association of Federally-Insured Credit Unions (NAFCU), with the support of Representative Bill Posey (R-Florida) and Denny Heck (D-Washington) reintroduced a bill that would require the National Credit Union Association (NCUA) to initiate a study on capital requirements for credit unions before finalizing the final risk-based capital (RCB) rule that is scheduled to go into effect on the first of January 2019.
Regulatory burdens and costs associated with the NCUA ruling are one of the primary concerns of the RCB rule, according to the NACU.
"NAFCU thanks Reps. Posey and Heck for reintroducing this important legislation that would help ensure that the NCUA, credit unions, Congress and others fully understand and comprehend the impacts this rule making will have on the industry," said NAFCU Vice President of Legislative Affairs Brad Thaler. "Requiring further study of this rule will only benefit the credit union industry and ensure a fair and appropriate risk-based capital system is put into place."
The Risk Based Capital Study Act—officially designated H.R. 3736, would require the study to examine the following criteria: the agencies authority to issue a two-tier proposal, the ways in which RBC compares to banking requirements, the impact on credit unions capital cushions, and an explanation on the ways risks are weighted by the agency.
If passed, the bill would delay the RBC rule 120 until after the report is reviewed by Congress, and allow greater capital resources for credit unions.
You can read the full press release by the NAFCU here.