WASHINGTON-The National Association of Community Credit Unions announced its support of Prompt Corrective Action reforms recently proposed by NCUA Chairman JoAnn Johnson stating that it is “long overdue.” “Community credit unions have generally maintained artificially high levels of capital given the risk on their balance sheets, primarily from consumer and real estate loans, to avoid even the potential of regulatory action,” NACCU Chairman Marc Schaefer, President and CEO of Truliant Federal Credit Union, said. “This has the unintended consequence of depriving the communities they serve of the application of capital to expand service to their communities and to the underserved.” “It's refreshing to be talking about moving away from a one size fits all capital requirement to one where the true risk of NACCU member credit unions' balance sheets are calculated and reflected in their net worth targets,” NACCU Executive Director Marc Selvitelli added. NACCU did state that the group was interested in ensuring that NCUA retains the flexibility to adapt as BASEL II evolves to allow for reasonable competitiveness with banks and their capital requirements. NACCU's Board did ask for further clarification on the delegation of CAMEL code adjustments to regional directors. [email protected]