The National Credit Union Administration (NCUA) Board on December 12 voted to delay for two-years the implementation of its risk-based capital rule until January 1, 2022.
The risk-based capital rule was scheduled to go into effect on January 1, 2020.
In addition, the normal operating level for the National Credit Union Share Insurance Fund (NCUSIF) will remain at 1.38 percent of insured deposits for 2020.
By law, the normal operating level must be set between 1.20 percent and 1.50 percent of insured deposits.
According to staff analysis, setting the normal operating level at 1.38 percent will preserve public confidence in the NCUSUIF, will prevent the impairment of the one-percent NCUSIF capitalization deposit, and will keep the NCUSIF equity ratio from falling below 1.20 percent during a moderate recession over a five-year period.
Also, the Board approved the agency's budget for 2020 and 2021. The combined operating, capital, and Share Insurance Fund administrative budgets for 2020 will be $347.4 million. The combined budgets for 2021 will be $360.1 million.
The agency's budget does not include a proposal from Board member Harper to increase staffing in the Office of Consumer Financial Protection, who would develop a dedicated consumer compliance examination for large, complex credit unions.
Read the proposal.
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