McWatters supports supplemental capital provision in RBC proposal

first_imgNational Credit Union Administration board member J. Mark McWatters supports including supplemental capital in the agency’s risk-based capital (RBC) proposal set to be issued for a 90-day comment period at the Jan. 15 NCUA board meeting.McWatters confirmed that to the Credit Union National Association Wednesday.  He also raised this issue with members of the New Jersey Credit Union League Tuesday at the NCUA’s headquarters. The NCUA board member said he would support a provision within the RBC proposal that would allow credit unions to access more sources of capital.CUNA has urged the NCUA to allow any federally insured credit union to use supplemental capital to meet RBC requirements, which could be permitted without statutory changes. CUNA also supports statutory changes to permit the use of supplementary capital to meet Tier I net worth requirements. Currently, only low-income designated credit unions may use supplemental capital for net worth requirements.On the legislative front, CUNA supports the Capital Access for Small Businesses and Jobs Act (H.R. 719). Introduced by Rep. Peter King (R-N.Y.), the bill would allow the NCUA to determine what forms of supplemental capital could be offered. continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more