ALEXANDRIA, Va.–During the NCUA board meeting several of the board members announced that the agency will soon be putting forth for comment a proposal on supplemental capital “as soon as possible.”
That announcement has the National Association of State Credit Union Supervisors (NASCUS) urging the federal agency to consider its input on such a plan.
“We applaud NCUA Board Chairman (Debbie) Matz for indicating the agency would propose ‘as soon as possible’ a rule on supplemental capital, as well as support from Vice Chairman (Rick) Metsger and Board Member (Mark) McWatters for a proposal,” said NASCUS CEO Lucy Ito in a statement. “Certainly, the details of any such plan will be critical. Toward that end, we second Board Member McWatter's call for a group of stakeholders – which should include state regulators who have first-hand experience supervising credit unions and other financials with supplementary capital authority – to consult with the agency on a rule. Overall, however, moving forward on a supplemental capital rule has potential for being a crucial step for the credit union system. NASCUS has long sought supplemental capital authority for credit unions as a tool for better managing risk and buttressing safety and soundness. Going forward, supplemental capital authority should enable credit unions to better weather the next financial crisis."