carrie hunt NAFCULarry Fazio’s commentary (“Revised RBC Proposal Reflects Lessons Learned,” Jan. 22, 2015, CU Times) cites the financial crisis as the catalyst for the NCUA’s second risk-based capital proposal, stating that many of the failures would have been prevented in part if this new rule had been in place. Unfortunately, this is an overgeneralization of a complex issue; capital is only part of the equation. In fact, credit unions experienced many fewer failures than their banking brethren during the crisis, and banks were operating under a risk-based system similar to what NCUA had proposed at that time.

While we are pleased that the NCUA listened to some credit unions’ concerns in its second proposal, NAFCU still supports withdrawing this rulemaking and addressing capital reform in Congress. Credit unions need a risk-based system that can account for both higher and lower risk. Neither the current system nor the proposed one achieves this.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.