Industry stakeholders and the NCUA tried to convince the DOD the NCUA’s small dollar loan regulations were fair to military borrowers. The requests fell on deaf ears until Matz’ speech produced a phone call to the NCUA’s Office of Consumer Protection the following day.

Matz also said the NCUA is writing a supplemental capital rule for risk-based capital.

“It turns out that under current law, the NCUA could count certain forms of debt as supplemental capital for the risk based capital ratio. For example, subordinated debt could be issued to members and non-members — but it would be uninsured,” she said.

Matz added she is committed to counting supplemental capital in full as it applies to RBC ratio, and will release a proposed rule for comment in the fall, with an effective date that would coincide with RBC implementation in 2019.

She also provided an update on the NCUA’s anticipated changes to field of membership rules, saying the agency was focused on broadening community charters, improving occupational charters and streamlining the process for federal credit unions to add new members.

Matz further updated the audience on the NCUA’s progress to eliminae the 5% fixed assets cap, finalize an asset securitization rule, ease restrictions on member business lending and increase the definition of a small credit union to $100 million when exempting them from future rules.

However, the chairman also cautioned that the proposals will require retraining examiners, which will require additional time and resources from the NCUA.