The National Credit Union Administration is seeking comments on a proposal regarding risk based capital (RBC) requirements under its prompt corrective action rules. This is easily the most important proposal that NCUA has released in years. The Credit Union National Association's analysis shows that, if implemented, it would lead to credit unions needing to hold as much as $7.3 billion in additional capital.
Even more concerning: We're talking about a multi-billion price tag of additional capital for a system that withstood, under the current system, the worst financial crisis in 80 years. Today, CUNA launched its “Risk Based Capital Action Center” at www.cuna.org/riskbasedcapital.
Based on the same grassroots ideas implemented in the Don’t Tax My Credit Union campaign, but retooled for a regulatory focus, we are hoping to use this site to encourage NCUA to fix the proposal.