At its most recent Board meeting, NCUA voted to delay the implementation of the risk-based capital rule by one year.  CUNA has been advocating for the delay of this rule and has pushed for a two-year delay through federal legislation that has passed the House, but remains pending in the Senate.

The Rule was scheduled to take effect on January 1, 2019, but the Board’s decision delays the implementation date until January 1, 2020.  The rule also exempts an additional 1,000 institutions from having to comply with the rule thanks to a change that raises the asset threshold to $500 million from $100 million.

For months, CUNA has expressed concerns about the regulatory burden and added costs the risk-based capital rule will impose.  In response to the Board’s action, CUNA President/CEO Jim Nussle said, “NCUA’s proposal to delay implementation of its risk-based capital rule by one year is a step in the right direction, but CUNA maintains the regulation is a solution in search of a problem.  Credit unions have expressed their well-founded concerns regarding NCUA’s risk-based capital rule, and CUNA will continue our work to ensure these concerns are heard.”