Removing Barriers Blog

CUNA Sends Letter in Support of Legislation to Repeal NCUA’s RBC Rule
Posted November 28,2017 by CUNA Advocacy

CUNA sent a letter to Representative Bill Posey in support of his recently introduced legislation to repeal the NCUA’s risk-based capital rule – The Common Sense Credit Union Capital Relief Act of 2017.  

The NCUA’s RBC rule is scheduled to go into effect in January of 2019.  Credit unions throughout the United States have expressed their significant concerns regarding the rule for the past few years.  In the letter, CUNA notes that many of these concerns pertain to whether NCUA has legal authority to impose the requirements. Additionally, credit unions have a particular concern with risk-based capital standards for the purpose of determining whether a credit union is well-capitalized as the Federal Credit Union Act permits the NCUA to impose a risk-based standard for the purpose of determining capital adequacy only. 

At CUNA’s Governmental Affairs Conference (GAC) earlier this year, NCUA Chairman McWatters said he hopes to revisit the RBC Rule prior to the effective date of January 2019. 

CUNA looks forward to working with Representative Posey on this important legislation and will continue to advocate on behalf of America’s credit unions and their 110 million members for common sense regulation.