ICBA called on the NCUA to create a minimum regulatory capital framework that is no less stringent than the Basel III regulatory capital framework in effect for community banks.
Background: The NCUA is proposing to raise the asset threshold for complex credit unions from $50 million to $500 million. NCUA is raising the threshold because a risk-based capital standard is set to take effect in 2022 for credit unions with assets over $500 million.
ICBA Position: In a comment letter, ICBA said the rule provides too small a capital cushion for complex credit unions, with the required credit union net worth ratio of 7 percent substantially lower than capital ratios required of community banks.