NAFCU Predicts Three-Year RBC Phase-In: Onsite Coverage
LAS VEGAS - NAFCU Director of Regulatory Affairs Michael Coleman predicted on Wednesday that the NCUA would extend the implementation period for the risk-based capital rule to at least three years.
NCUA Board Chairman Debbie Matz has said the phase-in period would be considerably longer than the 18 months specified in the current proposal.
Coleman’s comments were made during a legislative and regulatory panel discussion at NAFCU’s annual conference Thursday.
Carrie Hunt, NAFCU senior vice president of government affairs/general counsel, moderated the discussion with Coleman, Vice President of Legislative Affairs Brad Thaler, Vice President of Political Affairs Katie Marisic and Director of Legislative Affairs Jillian Pevo.
Matz delivered a speech on Wednesday at the conference on cybersecurity, interest rate risk and the proposed risk-based capital proposal.
“While members of Congress shared some specific concerns about certain aspects of our proposed rule, most members with whom I have spoken personally support our efforts to modernize the capital standards for credit unions,” she said. “Even in the letter to me signed by 324 members of Congress, they concluded that ‘applying risk-based weighting certainly has value, and we appreciate the NCUA for taking on this task.’”
Thaler criticized Matz for only picking out one sentence of the letter signed by lawmakers about the NCUA’s risk-based capital proposal.
“Chairman Matz selectively quoted from the letter yesterday taking comments from one paragraph and ignoring the eight others,” Thaler said, drawing hearty laughs from the audience. “The key word that was in those other paragraphs was ‘burden’ – that’s what members of Congress have expressed to NCUA, that this is going to be a burden on credit unions.”
In response to Thaler’s comment, NCUA Public Affairs Specialist John Fairbanks said, “The chairman clearly noted the concerns expressed by the members of Congress and that they appreciated the value of risk-weighting.”
Matz did not mention requests from credit union executives for a second comment period on the risk-based capital proposal at the agency’s Listening Sessions this summer.
“There’s no good reason for not having a second comment period,” Coleman said.