Fryzel Urges Vote on RBC Comment Extension
NCUA Board Member Michael Fryzel said he is confident the final risk-based capital rule will include suggested changes from trade associations.
However, in a May 13 letter to NAFCU President/CEO Dan Berger and CUNA President/CEO Bill Cheney, Fryzel also said the full NCUA board should vote on an extended comment period for the proposed rule.
“I believe that it is important for the NCUA board to take whatever time is necessary to hear the comments of everyone impacted by the rule, and review all comments and suggestions to make the rule more precise and useful as a supervisory as well as a safety and soundness tool for both the credit union industry and the NCUA,” Fryzel wrote in the letter.
“I am confident that, when the NCUA finalizes the risk-based capital rule, it will include significant changes from what has been proposed, and will incorporate the suggestions of your trade associations and credit unions across the country,” he added.
Watch Fryzel and Matz explain their positions on the comment period in video interviews:
Fryzel said the NCUA should not rush to finalize the rule.
“During the corporate crisis, quick decisions were necessary. We did not have the luxury of time,” he wrote. “Fortunately, we are not in a crisis mode and should take this opportunity to proceed with all appropriate care and precision. The NCUA board can afford to take the time to get it right.”
Fryzel said the importance of the rule's subject matter, along with the principles of due process, justifies consideration for an extension of time.
“This should properly be done before the full Board, at an open meeting, with each board member casting their vote for or against,” he said. “Accordingly, if the issue is brought before the NCUA board for a vote, I would support an extension of the comment period.”