Comments due July 26 on NCUA’s proposed two-year delay of risk-based capital for credit unions

A proposed rule to delay implementation of a risk-based capital rule for federally insured credit unions by two years to Jan. 1, 2022, is in Wednesday’s Federal Register with a public comment deadline of July 26.

The National Credit Union Administration (NCUA) Board, June 20 on a split vote of 2-1, approved issuance of the proposal for a 30-day comment period. In the interim, the agency’s prompt corrective action framework will remain in effect.

Without a delay, the rule is currently set to take effect Jan. 1, 2020, following amendments in 2018 that both provided a one-year delay of implementation and exempted an additional 1,026 credit unions, raising the asset size threshold of “complex” credit unions subject to the requirements from $100 million to $500 million.

The proposed delay has been panned by the American Bankers Association, the banking industry’s largest trade group. Banks have been subject to a risk-based capital regime since 2014.

Reg lookup: Delay of the Effective Date of the Risk-Based Capital Rules

RR: NCUA Board, voting 2-1, proposes delay to January 2022 in risk-based capital for credit unions (June 20, 2019)

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