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The NCUA Board today finalized a rule amending its 2015 risk-based capital (RBC) rule that, among other things, delays the rule's implementation date by one year to Jan. 1, 2020. As the lead on delay efforts – both on and off Capitol Hill – NAFCU is pleased with this change, but is still pushing for more.

"We appreciate NCUA Chairman J. Mark McWatters and Board Member Rick Metsger's efforts, as a one-year delay of the NCUA's risk-based capital rule is a step in the right direction," said NAFCU President and CEO Dan Berger. "However, we remain concerned about the regulatory burdens and costs the rule will place on credit unions. NAFCU will continue to advocate for Congress to delay the rule's implementation by two years in order to give the NCUA time to revise it."

Berger has encouraged the NCUA to "consider its entire rulemaking anew" following the enactment of S. 2155, which made changes to bank capital. Furthermore, a NAFCU-backed provision to delay the rule by two years passed the House three times this year.

Among other changes, the agency's finalized RBC rule amends the definition of a complex credit union from $100 million to $500 million – exempting an additional 1,026 credit unions from the rule.

Also today, the NCUA Board issued a proposal to modernize the Federal Credit Union (FCU) Bylaws. NAFCU has ardently advocated for bylaws changes and previously offered ways to modernize them. NAFCU's Regulatory Committee and NCUA staff discussed this modernization initiative in September; the bylaws have not been revised since 2007.

Of note, the proposal would add a section describing the concept of "member in good standing" to address the issue of violent and abusive members, but does not address the issue of expulsion.

The association has urged the NCUA to give credit unions the flexibility to craft a policy that best suits their needs when dealing with members who engage in illegal or abusive activities. However, the proposal specifies that the board "continues to believe that having a uniform set of FCU Bylaws is more consistent with the spirit of the FCU Act."

The proposal also includes a 90-day deadline for bylaws amendments; NAFCU had urged a longer amendment deadline.

The association is reviewing this proposal and will seek credit union feedback on its provisions.