BOSTON — NCUA Chairman Debbie Matz on Friday revealed some newdetails regarding a proposed rule under development that wouldincrease net worth requirements for credit unions with more than$50 million in assets.
|Matz made the announcement during her general session address atNAFCU's 46th Annual Convention in Boston.
|
Matz said the current 7% networth requirement would remain the floor requirement, as defined bythe Federal Credit Union Act. However, credit unions with more than$50 million in assets would be subject to higher risk-based networth requirements.
“The result would be a higher cap for credit unions with higherconcentrations of risky assets,” Matz said.
|According to NCUA Public Affairs Specialist John Fairbanks, theproposed rule is expected before the end of this year.
|In March, NCUA Deputy Inspector General James Hagen recommended the NCUA amend capital rules to require a higherlevel of risk-based net worth for credit unions with higher levelsof concentration or other risks in their member business loanportfolio. That recommendation was part of the IG's Material LossReview for the failed Telesis Community Credit Union.
|Larry Fazio, director of the Office of Insurance andExamination, said in February the NCUA was developinga risk-based capital rule that he described as “Basel lite,” sayingit would have a general but simplified Basel framework.
|In her speech Friday, Matz reaffirmed her pledge that the NCUAwill not impose Basel III standards on credit unions.
|“Basel III is not for this industry,” she said.
|Also at NAFCU Annual Conference:
- 4 Big Things from Confab
- Becker Calls it a Wrap
- Dollar Says Let Golden GooseLive
- Thursday in Pictures
- Non-Interest Income Balance
- Berger Promises Training Boost
- CFPB is Good for You
- Beantown Vox Populi
- Wednesday in Pictures
- Non-QMs Offer Opportunity
- Managing Outsourced Collections
- Losing Money at Loan Closings
- New Officers for 2013-2014
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