A proposal on subordinated debt – a form of alternative capital – for credit unions will be considered by year’s end by the federal regulator of credit unions, a top staff member of the agency said Thursday at a conference in San Francisco.
National Credit Union Administration (NCUA) Deputy General Counsel Lara Daly-Sims said staff is working to present to the NCUA Board the proposal on subordinated debt – a form of alternative capital for credit unions facing risk-based capital requirements – by the end of this year.
However, she also told the audience at the conference of the National Association of State Credit Union Supervisors (NASCUS) that the proposal on subordinated debt for credit unions will be a “heavy lift.”
The comments were first reported, on Twitter, by CUToday.info.
In June, as the agency staff was proposing to the board a delay in the risk-based capital rules (to 2022, rather than 2021), they underscored that the delay would give the board time to consider other changes in the capital rules, including subordinated debt, capital requirements for asset securitization, and an equivalent to the community bank leverage ratio (CBLR) developed by the federal banking agencies for banks and thrifts.