Risk-Based Net Worth
The National Credit Union Administration Board's proposal to impose risk-based capital requirements on federally-insured credit unions is the most important regulatory proposal facing the industry today. The comment period for the proposed rule ends May 28, 2014.
While the concept of risk-based net worth could be beneficial, the proposed rule will have significant negative effects on credit unions if it is implemented in its current form. League and Association President Paul Gentile notes that “the reaction amongst credit unions to NCUA's proposed risk-based capital rule is that growth will falter under the new standards and that not enough has been done to reward effective risk management performance. As a result, the League is committed to helping our members meet the challenges of the proposed rule starting by effective advocacy through the comment letter process.”
Given the heightened level of concern that this proposal presents for even credit unions with assets below the proposal's direct coverage trigger of over $50 million in assets, the League is a resource to your credit union to underscore to NCUA the need for substantive change. Strength is in the number of comment letters presented to the Agency to secure positive changes. Not form letters, but letters highlighting its real impact and real concerns.
• Why is NCUA going forward with this proposal now?
• What is the real threat to your credit union?
• Should NCUA be able to require credit unions to hold more regular capital than the current statutory level?
• Why are the risk weighting so different than banks?
• Why does the proposal not include credit risk or consider the complete balance sheet of the credit union?
• How will my comment letter make an impact?
TIME: 9:30 a.m. to 11:30 a.m.
FEE: There is NO cost for this workshop