NCUA votes 2-1 to delay RBC effective date

The NCUA Board decided Thursday, June 20, to seek public comment on the potential delay of its Risk Based Capital Rule until Jan. 1, 2022. Previously the effective date had been put on hiatus from an effective date of the rule from Jan. 1, 2019 to Jan. 1, 2020.  The NCUA voted 2-1 for the extended delay.

According to Credit Union Journal, “The NCUA said it would tackle three issues prior to the rule going into effect — a separate plan to expand the use of subordinated debt by credit unions, new regulations on asset securitization, and the possibility of creating a credit union equivalent of the Community Bank Leverage Ratio.

“NCUA Chairman Rodney Hood said two additional years allows for a ‘surgical approach,’ giving the agency enough time to propose and finalize changes in order to conduct a well-integrated implementation.”

Read the full article here.