National Credit Union Administration Chairman Debbie Matz today said that her agency would this fall issue a supplemental rule for risk-based capital that would count certain forms of debt — for example, subordinated debt issued to CU members and non-members — toward the risk-based capital ratio. “This is the year of regulatory relief,” she said. “As part of modernizing risk-based capital, I am committed to counting supplemental capital in full.”
ABA expressed its strong disapproval with NCUA’s “desire to act as a cheerleader for the industry it is charged with supervising,” according to ABA President and CEO Frank Keating. “After the credit union industry lobby failed to get supplemental capital authorized by Congress, NCUA is now apparently prepared to do it anyway.”
Keating urged Congress to be on “full alert,” adding that “it’s obvious NCUA is happy to move credit unions away from their statutory mission to serve consumers of modest means, whether or not Congress has given the agency appropriate authority.”
