NCUA Board to Consider New RBC Rule on Aug. 2
The board will also consider final suspension and debarment procedures, and a proposed rule on loans to members.
Even as opponents of the NCUA’s Risk-Based Capital rule push for Congress to delay the effective date of the plan, the agency’s board is scheduled to consider a new proposed RBC rule at its Aug. 2 meeting.
Agency officials would not discuss what the proposed rule contains, but sources in the credit union community say they expect the agency to delay the controversial proposal in some form.
Board Chairman J. Mark McWatters has said he favors the two-year delay now being considered on Capitol Hill. However, board member Rick Metsger has said he continues to favor the RBC rule, saying that a crisis such as the one facing credit unions that are heavily invested in taxicab medallions demonstrates the need for the regulation.
The RBC rule delay has been tucked into three pieces of legislation: the updating of the Committee on Foreign Investment in the United States, the FY19 Financial Services spending bill and a bipartisan House bill intended to loosen the capital markets.
The plan was dropped from the foreign investment legislation and the future of the appropriations and capital formation bills remain murky.
At the Aug. 2 meeting, the board also will discuss a 2018 mid-session budget review and the continuation of federal credit union loan interest rate ceiling.
The board also will consider final suspension and debarment procedures and a proposed rule on loans to members.