Sen. Mike Rounds, R-S.D., introduced a bill on Thursday that would delay the implementation of the National Credit Union Administration’s unpopular risk-based capital rule by a year.
The bill, known as the Common Sense Credit Union Capital Relief Act of 2018, follows the passage of a House bill earlier this year that also provides a one-year delay. That would push implementation of the rule to Jan. 1, 2021.
NCUA earlier this year approved its own delay, pushing the start date back one year to Jan. 1, 2020.
Credit union trade groups have long called for NCUA and lawmakers to delay implementation of the rule. The National Association of Federally-Insured Credit Unions worked with Rounds’ office on the legislation.
"While NCUA’s delay was extremely welcome, we believe additional study is needed – particularly as relates to ensuring that credit union capital requirements are no more stringent than those required of the banking industry,” Brad Thaler, vice president of legislative affairs at the NAFCU, said in a press release.
The Credit Union National Association argued that the capital rule “is a solution in search of a problem, a position we’ve held since the rule was first proposed” and supports “any legislative means to reduce the rule’s impact on credit unions,” Jim Nussle, the trade group’s president and CEO, said in a statement.
NCUA’s delay of the risk-based capital rule earlier this year also included
