LSCU, CUNA supported Risk Based Capital delay bill passes House
The House passed a bill Tuesday that contains an LSCU and CUNA supported provision to delay the implementation date of NCUA’s risk-based capital rule. Specifically, it would push the bill’s effective date back to Jan. 1, 2021, from the currently scheduled Jan. 1, 2019 date. The League has worked closely with Congressman Bill Posey to have the RBC delay included in this legislation, meeting with him last week in Washington, D.C. on this issue.
“We continue to work with Congressman Posey on the RBC delay issue,” said LSCU & Affiliates Senior VP, Association Services & Governmental Affairs Jared Ross. “He has been a tireless advocate for regulatory relief for credit unions and this victory in the House would not have been possible without his leadership.”
The provision is contained within the Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841). CUNA wrote in support of the bill while the House Financial Services Committee considered the bill. The committee passed the bill unanimously, by a 53-0 vote in May.
In addition to the regulatory burden posed by the risk-based capital rule and questions about whether the cost is justified, CUNA continues to note that the current Prompt Correction Action system worked for credit unions during the financial crisis.
CUNA wrote to the Senate Banking Committee Tuesday to urge it to work on legislation delaying the risk-based capital rule.