Today, Credit Union National Association sent this letter to Rep. Robert Pittenger (R-N.C.) in support of Section 701 of H.R. 5841, the “Foreign Investment Risk Review Modernization Act of 2018.” Section 701 would delay the risk-based capital rule finalized by the National Credit Union Administration (NCUA).
CUNA President/CEO Jim Nussle urged the House Financial Services Committee to consider and approve Section 701. The NCUA’s risk-based capital rule, which was finalized in October 2015, is a solution in search of a problem and would create risk-based capital standards for the purpose of determining whether a credit union is well-capitalized.
"Credit unions throughout the United States have expressed their significant concerns regarding the NCUA’s risk-based capital standards for credit unions. Specifically, many of these concerns pertain to whether NCUA has legal authority to impose the requirements," the letter reads. "In addition, credit unions have a particular concern with risk-based capital standards for the purpose of determining whether a credit union is well capitalized as the Federal Credit Union Act permits the NCUA to impose a risk-based standard for the purpose of determining capital adequacy only."
CUNA supports the measure and has previously backed legislation to repeal or delay the rule.