A divided NCUA board of directors yesterday voted to approve the agency’s risk-based capital delay. The final rule delay’s the agency’s risk-based capital requirements 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.
The New York Credit Union Association supports the delay, though Association President/CEO William J. Mellin has questioned whether a risk-based capital framework is even necessary for credit unions.
The board yesterday also split in approving its 2020–2021 budget. Ultimately, the board approved the agency’s budgets for 2020 and 2021, bringing the combined operating, capital and share insurance fund administrative budgets to $347.4 million and $360.1 million for 2020 and 2021, respectively.
The 2020 overhead transfer rate will be 61.3%, and the operating fee will increase by an average of 1.13% for natural-person federal credit unions with assets of more than $1 million. The NCUA will charge federal credit unions the operating fee in March 2020, and payments will be due in April 2020.
NCUA’s normal operating level will remain at 1.38% in 2020 and no distribution from the Share Insurance Fund is expected.
For more information on yesterday’s board meeting, visit NCUA’s website.