NCUA Chairman Debbie Matz told House Financial Services Chairman Jeb Hensarling (R-Texas) that stakeholders would likely have a chance to comment on a revised version of the risk-based capital proposal before the end of the year.
“I anticipate that the NCUA Board could issue the amended proposal before the end of 2014,” Matz wrote in a letter to Hensarling and 357 other lawmakers Wednesday.
The NCUA has reviewed the 2,056 letters it received during the first comment period for the original proposal. Credit unions will have another opportunity to comment when the revised proposal is released. The draft has not yet been completed.
“I have determined the changes we are considering to the proposed rule would exceed the parameters of the Administrative Procedure Act,” Matz wrote. “Based on discussions with NCUA's General Counsel, I have concluded that we need to issue a revised proposed rule with a new comment period. This new comment period is consistent with the requests made by many credit union stakeholders.”
Matz assured Hensarling that the amended version of the proposed risk-based capital rule would contain a longer implementation period and modified risk weights for mortgages, investments, member business loans, CUSOs and corporate credit unions, along with other changes.
“Stakeholders will also be invited to comment on an alternative approach for addressing interest rate risk using the supervisory process,” she wrote.
Matz said a “well-calibrated” risk-based capital rule is vital to a successful credit union system in the future.
“The insights obtained during a new comment period will allow NCUA to further improve the proposed framework before implementation. These modifications will better ensure the final rule's effectiveness and workability,” she said.
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