NCUA Proposes Risk Based Capital Rule Delay Posted by Association of Vermont Credit Unions on 3:21 PM

In last week's meeting of the NCUA board, the agency proposed delaying the effective date of its Risk-Based Capital rule for an additional year and proposed increasing the threshold for compliance.
Under the proposal, the threshold for compliance would increase from the $100 million in assets in the original rule to $500 million. The proposal will be open for comment for 30 days after it is published in the Federal Register.

If adopted, the rule would go into effect on Jan. 1, 2020, rather than the Jan 1, 2019 date contained in the original rule.  The rule would exempt 90% of credit unions, according to Larry Fazio, NCUA Director of the Office of Examination and Insurance. He added, however, that the approximately 10% of the credit unions that would be covered, hold 90% of the system’s assets.

Some members of the House Financial Services Committee have been pushing for a two-year delay.  CUNA is still dismayed by the RBC proposal.  NASCUS is pleased with the delay, but still has concerns about the proposal.

Read details in this Credit Union Time article.