WASHINGTON (6/20/14, UPDATED 12:49 p.m. ET)--More heavy hitters from Capitol Hill have weighed in with concerns about the National Credit Union Administration's proposed risk-based capital proposal.
At issue is the NCUA proposal that would impose on credit unions with greater than $50 million in assets new standards that would restructure the agency's current "prompt corrective action" regulation to involve calculation of a capital-to-risk-assets ratio.
The chairman of the House Financial Services Committee chairman and a second high-ranking member of that panel submitted a letter today.
Rep. Shelley Moore Capito (R-W.Va.), who heads the House Financial Services subcommittee on financial institutions and consumer credit, and Rep. Jeb Hensarling (R-Texas), who chairs the parent financial services panel, joined forces Friday to ask the federal regulator to consider whether its proposed risk weights--which deviate markedly in some areas from the standards banking regulators have applied for banks--are appropriate.
The letter asks the NCUA to:
Take into account the cost and burden of implementing new risk-based capital requirements beyond the current leverage ratio;
Provide justification and more clarity as to why the proposed risk weights differ from those applied to other community financial institutions; and
Give credit unions more time than the proposal's allotted 18 months to come into compliance after it is finalized.