NCUA’s risk-based capital proposed rule has been published in the Federal Register, and comments will be due Sept. 7. CUNA called the proposal a step in the right direction, but still questions the need for such a rule.
The proposal would delay implementation of the risk-based capital rule by one year, to Jan. 1, 2020, back from the currently scheduled Jan. 1, 2019.
According to NCUA, this change would result in 90% of credit unions being exempt from the rule. Under the proposed rule, more than 98% of all complex credit unions would be considered well-capitalized.
CUNA also continues to support legislation, including the JOBS and Investor Confidence Act (S. 488) and Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841) would delay implementation to Jan. 1, 2021.