The National Credit Union Administration continued serving as a credit union industry advocate by proposing another delay in implementing risk-based capital rules for large credit unions.
The proposed rule, approved on a 2-1 vote over the strong opposition of NCUA board member Todd Harper, would delay the effective date by more than two years, to Jan. 1, 2022. The vote follows a one-year delay approved in October 2018 that exempted more than 1,000 institutions under $500 million in assets.
In his dissent, Harper noted that risk-based capital rules went into effect for banks years ago and cited the recent taxi medallion credit union failures as a warning against lax oversight. "We are forgetting the past repeatedly, just like characters in Groundhog Day," he said.
As part of its long-standing call for policymakers to re-examine the credit union industry’s tax and regulatory subsidies, ICBA recently urged Congress to investigate the NCUA's failure to prevent credit union lending abuses.
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