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Call to Action: Comment on NCUA's Risk-based Capital Rule before the May 28 Deadline
Thursday, April 17, 2014 7:00 AM

The National Credit Union Administration is accepting comments on its proposal to establish a risk-based capital rule for credit unions, and the deadline for submitting comments is May 28. Your comment is urgently needed now.

The Cornerstone Credit Union League is aware of only six comment letters sent so far from our region, and as the largest league in the country, we are behind the curve. Cornerstone is urging credit unions to comment by the May 28 deadline. A capital requirement is the pivotal issue that links all credit unions together. Regardless of whether the proposal adversely impacts you today, this is an issue that could ultimately affect all CUs.

Important points to keep in mind:

  • Credit unions will basically fall $7.3 billion short of their current capital amounts. That’s because credit unions tend to maintain a buffer beyond what is required to be well capitalized. Under NCUA’s proposal, that buffer will be reduced by $7.3 billion. In order to restore that buffer, credit unions will have to consider increasing loan rates, reducing savings interest, or changing their services by reducing mortgage loans and MBLs.
  • This proposal covers CUs with assets over $50 million. Many credit unions whose assets are currently between $40 million and $50 million will exceed the $50 million level in just a few years.
  • NCUA will have the authority to impose even higher capital standards on a case-by-case basis.
  • Credit unions must be in compliance with the new capital requirements 18 months after the rule takes effect. Banks have nearly nine (9) years to comply with the new Basel III capital requirements.

NCUA must hear from credit unions on this important issue. Personal letters from credit unions can cause the agency to reexamine and modify this proposal. Take a few minutes this week to write a short letter to NCUA telling them how you feel about this proposal.

Need more help? Join Cornerstone as we take this issue on the road. We'll discuss NCUA's risk-based capital proposal with you in depth and help you draft your comment letter. The roadshow schedule is as follows:

Friday, April 18, 10:00-11:30 am
Cornerstone Credit Union League
1122 Colorado, Suite 1307
Austin, TX 78701

Tuesday, May 6, 10:00-11:30 am
Brookstreet BBQ
10705 Westheimer Road
Houston, TX 77042

Tuesday, May 13, 11:30-1:00 pm
Cornerstone Credit Union League
631 East Hill Street
Oklahoma City, OK  73105

If attending any of the roadshows, please RSVP to Charlotte Spencer at

If you need assistance writing your letter, contact Suzanne Yashewski, Cornerstone’s senior vice president of Regulatory Compliance, a And please copy Yashewski on any correspondence you do send.

For more information, please visit our Cornerstone Comment Calls page or CUNA’s Risk-Based Capital Action Center for the latest information on the proposal and to access the CUNA calculator.