CU*Answers CEO: NCUA's Changes to RBC Not Enough
A west Michigan CUSO has come out against the NCUA's revised Risk Based Capital proposal, saying the changes made to the rule are merely superficial, not substantive.
“The manner in which the NCUA presented the RBC2 proposal at the board meeting and in its commentary is that they ‘listened’ to the industry and made the changes that were asked for,” CU*Answers CEO Randy Karnes said. “However, it’s our view that they focused on the minutia of the regulation as a way to sway industry leaders away from a holistic view of the regulation.”
Karnes said the regulation undermines the cooperative nature of credit union charters and continues to compare credit unions to their banking competitors with a complete misunderstanding of what credit unions were created to accomplish. He added that by increasing the capital requirements on credit unions it will make it easier for the NCUA to put them in Prompt Corrective Action and to levy an unfair tax against members.
CU*Answers plans to release details about its view of RBC as part of a three-part series.Go to main navigation