McWatters on Risk Based Net Worth Rule

At NASCUS conference, October 22, 2015, a news summary:

Regarding the new risk-based capital rule, McWatters repeated the statement he made during the board meeting that he believes the final rule is “illegal.” “A future new NCUA board may take a different view (than the current board) with respect both to the legality and approach of the new rule.”

April 2016 from NCUA’s Newsletter: “NCUA and credit unions will need to keep an eye on the House Financial Services Committee, which is reviewing capital standards for community banks. NCUA will need to watch this process very carefully as it unfolds, and the board may need to reconsider our risk-based capital rule. . . I dissented to the adoption of this rule because I found many aspects of it were not justified under the Federal Credit Union Act. As credit unions for the most part are thriving without the rule, I continue to challenge this action, and nothing has dispelled my very serious concerns about its impact when it takes effect in January 2018.”

RBC Status

Today the rule is still on the books with the implementation date pushed out to 2022. (https://www.ncua.gov/newsroom/press-release/2019/board-proposes-delaying-risk-based-capital-rule-until-2022)

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