Stop and Study Heads to Mark Up
H.R. 2769, the Risk-Based Capital Study Act, will be scheduled for mark-up by the House Financial Services Committee on Wednesday, Sept. 30 at 10 a.m. Eastern. According to multiple sources who asked not to be identified because the committee has not officially announced the mark up, the so-called stop and study bill, which would direct the NCUA to re-evaluate its proposed RBC rule, justify its merits and explain the agency’s authority to impose the capital requirement on credit unions, is also expected to be voted on by the committee the following day.
The bill was introduced by Reps. Stephen Fincher (R-Tenn.), Dennis Heck (D-Wash.) and Bill Posey (R-Fla.).
CUNA President/CEO Jim Nussle wrote a letter to House Financial Services Committee Chairman Jeb Hensarling (R-Texas) and Ranking Member Maxine Waters (D-Calif.) in support of the bill Tuesday. Nussle wrote that committee action on the legislation would send another very significant signal to the NCUA that its proposal must be consistent with the law and seek to minimize additional regulatory burden on credit unions.
While CUNA's opinion of the bill was initially mixed, NAFCU has always fully supported the legislation. NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt wrote in June that the bill was crucial because crucial a change as significant as imposing a risk-based capital regime on credit unions deserves maximum scrutiny from both the NCUA and Congress before any final rulemaking.
NCUA Chairman Debbie Matz said she plans to finalize the rule by the end of the year. Board Member Mark McWatters said in January when he voted against a revised version of the rule the NCUA does not have the legal authority to implement a two-tiered risk-based capital regime.