Newsroom

The NCUA Board today will consider a NAFCU-backed proposal to delay the agency's risk-based capital (RBC) rule.

NAFCU has long supported and led efforts to delay the RBC rule so it could be revisited by the agency. This year, NAFCU initiated congressional action to obtain a delay for credit unions in light of changes to bank capital rules contained in S. 2155. As a result of NAFCU's advocacy efforts, a provision to delay the RBC rule by two years has passed the House three times. The provision comes from the Common Sense Capital Relief Act (H.R. 5288), which was introduced by Reps. Bill Posey, R-Fla., and Denny Heck, D-Wash., in March. NAFCU President and CEO Dan Berger met with Posey and Heck to thank them for their ongoing efforts to protect the industry from the adverse effects of this rule.

While NAFCU supports an appropriate RBC system for credit unions, it has urged the rule's delay so the NCUA could have additional time to address the adverse impacts of the rule, primarily the regulatory burdens and costs that will ensue.

Revealing details of the proposal last week, NCUA Chairman J. Mark McWatters said the changes would include a one-year delay of the rule and raise the definition of a complex credit union from $100 million to $500 million.

Also on today's agenda is a discussion of the federal credit union loan interest rate ceiling, which expires Sept. 10. NAFCU President and CEO Dan Berger has encouraged the board to consider the potential benefits of increasing the interest rate ceiling. Absent an increase, Berger said the NCUA should keep the rate at its current 18 percent and also explore a floating interest rate ceiling.

Also on the agenda:

• 2018 mid-session budget;
• a proposed rule on loans to members; and
• final suspension and debarment procedures.

NAFCU will monitor today's NCUA Board meeting, slated to begin at 10 a.m. Eastern, and provide credit unions with an update.