House Passes Risk-Based Capital Rule Delay for Third Time

For the third time in recent weeks, the House on Thursday passed legislation that includes a two-year delay for the NCUA’s Risk-Based Capital Rule.

The Senate has not yet considered legislation that includes a two-year delay.

Voting 217-199, the House Thursday passed the FY19 Financial Services appropriations measure. That bill includes a provision delaying the RBC rule.

Earlier this week, the House passed legislation to ease the ability of companies to raise capital. That bill also includes the RBC delay. The Senate has not considered that legislation.

And on June 27, the House passed legislation to update the Committee on Foreign Investment in the United States. That bill also includes the RBC delay and is being worked on in a House-Senate conference committee.

Credit union trade groups have been pushing for the delay.

“NAFCU has led this charge on behalf of America’s credit unions and enacting this legislation would give them more time to comply with the rule while also giving the NCUA time to revise it,” Carrie Hunt, NAFCU’s executive vice president of government affairs and general counsel said.

CUNA also endorsed the legislation

“CUNA has maintained since NCUA first proposed the risk-based capital rule that it is a solution in search of a problem, so we support any legislative means to reduce the rule’s impact on credit unions,” CUNA President/CEO Jim Nussle said.

NCUA Chairman J. Mark McWatters has endorsed the two-year delay. However, Board member Rick Metsger has said that the agency needs a strong RBC rule, citing the crisis facing credit unions that are heavily invested in taxi medallions as evidence.

The Financial Services funding bill also would place the CFPB under the annual appropriations process.

While considering the bill, the House defeated an amendment that would have prohibited the Postal Service from developing a postal banking proposal or a pilot program to test it.