This is the second delay of the agency's risk-based capital rule. The risk-based capital rule was initially scheduled to go into effect on January 1, 2019.
In a statement, Senator Brown stated:
“I am disturbed that ten years after the financial crisis, the NCUA is once again delaying important rules to increase capital at large credit unions. I commend Board Member Harper for opposing this unnecessary extension and demanding that NCUA focus on strengthening supervision and identifying risks to credit unions.”
Read the press release.
Would RBC really increase capital at large credit unions? From what I've seen, most CU's would actually benefit from RBC given the low risk profile of our balance sheets. As an industry, CUs already carry much more capital than banks.
ReplyDeleteA vast majority of large credit unions are already in compliance and would not need to raise capital to comply with the risk-based capital requirement.
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