The long-awaited risk-based capital proposal is on the agenda of the NCUA’s Jan. 23 board meeting released on Thursday.
“Proposed Rule, Part 702, Prompt Corrective Action and Risk-Based Capital Measures,” is listed as the last item on the meeting agenda.
The 7% capital standard under the Federal Credit Union Act would remain the base requirement, according to previous statements from the NCUA on the requirement. However, credit unions with more than $50 million in assets could be subject to new requirements.
“This is a very complicated rule and we want to be sure to get it right. The idea will be to risk rate the capital so credit unions that are holding riskier capital on their books will have to hold higher capital levels,” NCUA Chairman Debbie Matz told Credit Union Times.
“It’s very complicated. The staff has been working diligently on it and they simply needed more time and we encouraged them to take the time that they need because we want to make sure they do get it right,” Matz added.
The final derivatives rule is also included on the agenda.
The first order of business will be the NCUA’s Strategic Plan for 2014 through 2017, and Annual Plan for 2014 and 2015.
The board will also consider matters related to the Federal Credit Union Loan Interest Rate Ceiling.
The Jan. 23 meeting takes place at 10 a.m. at the NCUA’s headquarters in Alexandria, Va.