WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – released the following statement on the National Credit Union Administration’s (NCUA) decision to delay the implementation of its risk-based capital rule that protects the credit union system and its members. The NCUA Board approved a proposal to extend the effective date of its risk-based capital rule to January 1, 2022, the second time it has delayed the rule. NCUA Board Member Todd Harper voted against the proposal, highlighting the importance of strong capital standards.
The risk-based capital rule was finalized in October 2015 with an initial effective date of January 1, 2019. In 2018, the NCUA delayed implementation of the rule to January 1, 2020, and exempted credit unions with less than $500 million in assets, an increase from $100 million. According to GAO and the NCUA IG, the capital rules leading up to the financial crisis resulted in credit union failures.
“I am disturbed that ten years after the financial crisis, the NCUA is once again delaying important rules to increase capital at large credit unions,” said Brown. “I commend Board Member Harper for opposing this unnecessary extension and demanding that NCUA focus on strengthening supervision and identifying risks to credit unions.”