Welcome to CUNA’s RBC blog! As of today, there are 57 days left to comment on this critical proposal.
NCUA’s proposed Risk-Based Capital rule would be the most detrimental, wide-reaching regulatory change affecting credit unions in years. If adopted, credit unions with assets greater than $50 million would need to increase the amount of capital held in order to be well capitalized, and could face burdensome risk weightings that would serve as a disincentive for member business and mortgage loans, and long-term investments. CUNA’s calculations project that up to $7.3 billion in additional capital would need to be held. These changes are being proposed after the existing capital rules allowed credit unions to survive the greatest economic disaster since the great depression. We think this proposal is a regulation in search of a problem, plain and simple.
CUNA’s RBC blog will focus on the potential issues, what leaders throughout the credit union system are saying about them, and will provide a forum for CUNA members to discuss the issues with each other and with CUNA staff. This will be a place for you to learn about the rule and how it might change the way your credit union will operate in the future. We will take specific parts of the rule and discuss them in detail, using language that makes sense to credit unions, not just lawyers. We will also summarize what people are saying about the proposed rule. We’ll include views from leagues, other trade associations, individual credit unions, and the press. We hope to make this a place that collects news and developments for you. It will be updated regularly, so check back often.
We hope you will find the blog useful. If you ever have any comments, please feel free to contact us at firstname.lastname@example.org.