NCUA Might Delay Risk-Based Capital Rule Effective Date
NCUA Board Chairman Debbie Matz said the proposed phase-in period for the risk-based capital rule might be changed.
In the agency’s monthly report released on Monday, Matz said credit unions will be given adequate time to comply with the risk-based capital rule after it is finalized.
“However the rule may be changed, affected credit unions will be given adequate time to comply before the final rule takes effect,” Matz said in the report.
“The proposed 18-month phase-in is not etched in stone. If the comments raise sensible reasons to delay the effective date further, the NCUA Board will consider doing so.”
Despite the possibility of a delayed effective date, an NCUA spokesperson noted that the current 18-month phase-in period is longer than normal.
The comment period for the proposed rule closes on May 28. Matz and Board Member Rick Metsger will host a series of listening sessions in the summer. No date has been set for a final vote.
The proposed rule requires credit unions with more than $50 million in assets to meet certain risk-based capital requirements.
Matz told CU Times in April that significant changes will be made to the overall rule, which has generated much criticism from the industry.
“We are looking at every aspect of the rule and I know that there will be many changes made before the rule is finalized. But at this point, the comment period isn’t over,” Matz said after the agency’s last board meeting. “We don’t know what those changes are and we certainly don’t know what the implementation period will be at this point.”