Metsger Supports Supplemental Capital Bill
NCUA Board Member Rick Metsger has put his support behind H.R. 719, the Capital Access for Small Businesses and Jobs Act, which would permit credit unions lacking a low-income designation to access supplemental capital.
Metsger also identified areas of the risk-based capital proposal that he said should be amended.
“H.R. 719 would provide credit unions with an additional tool in their toolbox, but it is not a panacea or a prerequisite for adoption of a risk-based capital rule as required by current law,” Metsger said Wednesday at the Massachusetts Credit Union League’s annual meeting and convention in Charleston, S.C.
“With Congress recognizing the statutory barriers credit unions face in raising additional capital, enactment of this bill would provide a two-pronged approach to enhancing credit union capital with both regulatory and congressional action,” he added.
NCUA Board Chairman Debbie Matz has also declared her support for the bill.
During his speech, Metsger mentioned changes that should be made to the proposed RBC rule, including a longer implementation period and modifying the risk weights for investments in CUSOs, corporate perpetual capital and cash at the Federal Reserve.
Metsger also said the agency should clarify that only the NCUA Board, not examiners, would be able to increase capital requirements.
Metsger indicated that he is seeking better ways to address interest rate and concentration risk. He noted that credit unions would have to accept the added burden of reporting more information on call reports to improve the risk-based analysis.
The comment period on the proposal ended on May 28. The NCUA is hosting a listening session for stakeholders in Los Angeles on Thursday.