WASHINGTON (3/19/14)--Hundreds have signed up, but a few slots are still open for those who wish to take part in today's webinar from the Credit Union National Association on the National Credit Union Administration's risk-based capital (RBC) proposal.
The RBC proposal would restructure NCUA's current prompt corrective action regulation to include calculation of a capital-to-risk-assets ratio, analogous to Basel III for community banks. The risk weights would be substantially different, and the proposal would impose higher capital requirements for credit unions with higher concentrations of assets in real estate loans, member business loans, longer term investments and some other assets.
The proposal would apply to credit unions with assets of more than $50 million.
CUNA has warned that the RBC plan, as proposed, could affect the core operations of most, if not all, credit unions with assets over $50 million, and is working with the agency to reinforce the need to reduce credit unions' regulatory burdens, not increase them.
If the RBC proposal is not withdrawn, changes must be made, CUNA has emphasized. NCUA Chairman Debbie Matz, in a letter sent to CUNA last week, said key changes to the proposal are "not out of the question" prior to the rule becoming final.
CUNA has urged credit unions to weigh in on the proposal to let regulators know their concerns.
CUNA's free, hourlong webinar today, titled "NCUA's Risk-based Capital Rule: Can It Be Fixed?" is scheduled to begin at 3 p.m. (CT). Topics to be explored during the webinar include:
Key aspects of the proposal;
The proposal's financial impact on credit union operations; and
The top legal issues create by the proposal.
CUNA President/CEO Bill Cheney will be joined at the webinar by CUNA Chief Economist Bill Hampel and Deputy General Counsel Mary Dunn.
Participants also will have the chance to hear directly from credit union CEOs about their perspectives on the proposed rule. A short question-and-answer session will wrap up the session.
A recording of the webinar will be available on the CUNA website 24 hours after the live event.
In addition to the webinar, CUNA is offering a catalog of reference tools to help credit unions determine if and how they will be affected by the NCUA proposal, and to take action by sending comment letters to the agency. Also, CUNA has produced an "Inside Exchange" video segment on the steps for writing an effective comment letter on this issue.
To register for the webinar and access more CUNA risk-based capital content, use the resource link.