Chip Filson, co-founder of Callahan & Associates, said the risk-based capital system proposed by the NCUA is the wrong approach for credit unions.
“After nearly 25 years of risk-based efforts to set the right level of capital, there is a growing consensus among regulators, academics and expert commentators that RBC, and similar Basel efforts, do not work as well as a simple leverage ratio,” Filson said in a new Co-Ops for Change analysis.
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