Risk-Based Capital Doesn't Make The RegRelief Cut

WASHINGTON - (07/27/05) -- Lawmakers will introduce acomprehensive regulatory relief bill for credit unions and banks onThursday but the bill will not include NCUA's proposal to enact arisk-based capital system for credit unions, the top credit unionpriority. The absence of the risk-based capital provision meansthere was no broad consensus on the House Financial ServicesCommittee for the measure and that the credit union lobby will havean uphill battle to get the measure added later on, sourcesfamiliar with the process told The Credit Union Journal. Thepackage will, however, include as many as a dozen provisions thatwere included in the bill that passed the House in the lastCongress, and one additional one which would redefine the conceptof net worth for credit unions to allow them to continue poolingtheir capital after mergers. A similar Reg Relief bill is scheduledto be introduced in the Senate, but not until after Congress returnfrom its August recess.