CHICAGO – NCUA Chairman Debbie Matz said Thursday during theagency's second listening session that the agency's final risk-based capital rule will include a longer implementationperiod than the proposed 18 months.

“I guarantee that no matter how long we extend it, it will neverbe enough,” she said.

Matz also said the proposed rule would require roughly 200credit unions to raise, at most, $663 million to retain wellcapitalized status.

CUNA estimated the rule would require affected credit unions toraise more than $7 billion collectively.

Matz called this estimate a “myth” and told CUNA Interim CEOBill Hampel, who was in attendance, not to “jump out of hisseat.”

The NCUA chairman also told the audience a capital buffer is notrequired for any credit union.

“Even if the proposed rule became final tomorrow, without doinganything, more than half of all credit unions subject to the rulewould have a buffer of at least 3.5% or even higher than they dotoday,” Matz said.

She also told the credit union executives that agriculturallending issues would be addressed in the final rule.

“Here in the Midwest, I especially know how criticalagricultural loans are to farmers and to rural communities,” Matzsaid. “So it was not our intention to put you out of businessor prevent you from making those loans. I share your concerns andwe will make sure to address it in the final rule,” she added.

Matz also said it was not the NCUA's intent to provide examinerswith the independent authority to raise capital requirements. Theagency plans to re-write this portion of the proposal, sheadded.

Matz assured credit unions that their examiners would have toget the approval of the supervisory examiner, regional director andthe NCUA board before exercising that proposed authority.

Matz told the audience the agency understands all the riskweights in the proposal need to be reviewed.

“We are right now literally reviewing every risk weight,” shesaid.