RBC Delay Introduced in Senate

Sen. Mike Rounds (R-S.D.) introduced a Senate version of a CUNA-backed bill to delay implementation of NCUA’s risk-based capital (RBC) rule by two years, to January 2021.

NCUA finalized a rule in October to delay the rule’s implementation by one year, to January 2020. The agency, in its action, also amended the definition of a complex credit union from $100 million to $500 million – exempting an additional 1,026 credit unions from the rule.

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

Rounds’ bill, the Common Sense Credit Union Capital Relief Act of 2018 (S. 3750), has a House companion, H.R. 5288, introduced by Rep. Bill Posey (R-Fla.) in March.

RBC delay language is included in the House-passed version of the Senate’s JOBS and Investor Confidence Act of 2018 (S. 488), now referred to as the “JOBS Act 3.0.” The differences have yet to be reconciled but with the introduction of S. 3750, the proposed RBC delay is now bicameral.