Risk-Based Capital Bid Reemerges ForCUs
WASHINGTON - (10/18/05) -- The credit union lobby will askCongress again Tuesday during hearings on regulatory relief toinclude a provisions enacting a risk-based capital systems. Theproposal, which was developed by NCUA, was rejected when theregulatory relief bill was introduced in Congress in July. "Wethink it's appropriate," John McKechnie, chief lobbyist for CUNA,told The Credit Union Journal Monday. McKechnie said Phillip Buell,president of Lima, Ohio-based Superior FCU's, will be asking aHouse Financial Services subcommittee to add both the risk-basedcapital provision and a separate proposal to increase the cap onmember business loans to 20% of assets into the regulatory reliefbill. A witness appearing on behalf of NAFCU, Bradley Beal,president of Nevada FCU, will also ask the committee to add therisk-based capital measure to the bill. The proposed relief billhas more than a dozen credit union-specific provisions in it,including allowing all federal credit unions to provide limitedservices to non-members within their fields of membership; allowingcredit unions to retain their select groups after converting tocommunity charters; allowing privately insured credit unions tojoin the federal home loan banks; and allowing NCUA, instead ofCongress, to set limits on loan maturities and permissibleinvestments for credit unions.