Matz called this estimate a “myth” and told CUNA Interim CEO Bill Hampel, who was in attendance, not to “jump out of his seat.”

The NCUA chairman also told the audience a capital buffer is not required for any credit union.

“Even if the proposed rule became final tomorrow, without doing anything, more than half of all credit unions subject to the rule would have a buffer of at least 3.5% or even higher than they do today,” Matz said.

She also told the credit union executives that agricultural lending issues would be addressed in the final rule.

“Here in the Midwest, I especially know how critical agricultural loans are to farmers and to rural communities,” Matz said. “So it was not our intention to put you out of business or prevent you from making those loans. I share your concerns and we will make sure to address it in the final rule,” she added.

Matz also said it was not the NCUA's intent to provide examiners with the independent authority to raise capital requirements. The agency plans to re-write this portion of the proposal, she added.

Matz assured credit unions that their examiners would have to get the approval of the supervisory examiner, regional director and the NCUA board before exercising that proposed authority.

Matz told the audience the agency understands all the risk weights in the proposal need to be reviewed.

“We are right now literally reviewing every risk weight,” she said.