Final RBC rule should not unduly burden credit unions, says Rep. Holding
Wednesday, September 17, 2014
The tally of Congressional members raising their concerns about the National Credit Union Administration’s (NCUA) risk-based capital (RBC) proposal continues to grow this week with additional comments from Congressman George Holding (R-N.C.).
Holding, a first-term Republican and former U.S. Attorney, questioned NCUA’s legal authority under the Federal Credit Union Act in a letter sent to NCUA Chairman Matz on September 16.
“Credit unions have aided our economy both during and after the financial crisis,” wrote Holding. “The proposed rule by NCUA, when it is finalized, should not unduly burden credit unions nor adversely affect healthy credit unions' ability to meet the needs of their members. I am concerned that the proposed rule exceeds the authority that Congress conveyed to NCUA under the Federal Credit Union Act.”
He also raises specific concerns with the agency’s authority to impose higher risk-based capital requirements for well-capitalized credit unions than are applied to adequately capitalized credit unions.
“We started talking with Congressman Holding and his staff about this issue in July during our Hike the Hill visit,” said SVP Association Services Dan Schline. “He’s been receptive to our concerns and we appreciate his willingness to raise these important issues with the NCUA.”
Read the full letter here.
See related news: Radebaugh calls for second RBC comment period