ARLINGTON, Va.–The National Association of State CU Supervisors responded to NCUA Chairman Debbie Matz’s remarks that she is “committed to supplemental capital in full” by saying it welcomes the support.
“Supplemental capital has been a core issue for NASCUS throughout much of its long history, so we appreciate Chairman Matz’s remarks today,” said NACUS CEO Lucy Ito. “State regulators and state-chartered credit unions pushed aggressively for including supplemental capital in both the risk-based capital proposals 1 and 2.
“In particular, several states have already authorized certain forms of supplemental capital for their non-low income credit unions, but without PCA capital treatment these tools have not been a cost-effective resource for credit unions to date,” Ito continued. “NASCUS urges NCUA to consider and incorporate these preapproved forms of capital in their definition of supplemental capital, both to facilitate timely access to this tool for credit unions, and to provide a roadmap and testing ground for NCUA as it develops its own standards.”