The NCUA board of directors will hold their monthly meeting next Thursday, Dec. 12. During the meeting, the board will vote on a final risk-based capital rule, which could delay the agency’s risk-based capital requirements until 2022.
At its October 2015 meeting, the NCUA board originally approved the RBC rule, which was scheduled to go into effect on Jan. 1, 2019. NCUA subsequently passed a supplemental final rule amending the 2015 final rule by delaying the effective date until January 1, 2020, and raising the asset threshold for a “complex credit union” from $100 million to $500 million.
In June of this year, the board voted along party lines for a proposal that would again delay the rule, this time until 2022. NCUA Board Chairman Rodney Hood and Board Member J. Mark McWatters — both Republicans — voted in favor of the proposed delay, while Board Member Todd Harper, a Democrat, voted against delaying the risk-based capital framework.
In July, New York Credit Union Association President/CEO William J. Mellin wrote a comment letter to the agency that expressed general support for the delay. “Now that bank regulators are considering revisions to community bank capital requirements, NCUA should consider taking similar steps for credit unions,” he said at the time.
On Thursday, the board is also expected to finalize the agency’s 2020-2021 budget and receive a briefing on the National Credit Union Share Insurance Fund Normal Operating Level. The proposed 2020 operating budget is $316.2 million and includes an increase of three positions from the authorized 2019 staffing levels.
The board meeting will begin at 10 a.m. and will be streamed live on NCUA’s website. Results from the meeting will be posted on the agency’s website and reported in The New York Minute.