NCUA to Propose One-Year Delay Risk-Based Capital Rule

In a letter to Representatives Bill Posey (R-Fla.) and Denny Heck (D-Wash.), National Credit Union Administration (NCUA) Chairman Mark McWatters said the agency will consider delaying the effective date of its risk-based capital rule to January 2020 from January 2019.

In addition, the NCUA will consider raising the threshold for which credit unions can qualify as "complex" under the requirements of the rule to $500 million from $100 million.

According to the March 2018 industry data, the proposed increase in the threshold would exempt 1,040 credit unions from the risk-based capital rule. Only 539 credit unions would be subject to the risk-based capital rule, if these changes are made.

McWatters said the change would not impair the safety and soundness of the National Credit Union Share Insurance Fund.

The NCUA Board will vote on the proposal at its August 2 meeting.

The House of Representatives has passed legislation that would delay the implementation date of NCUA's risk-based capital rule for two years.

Read McWatters' letter.