California and Nevada's voice in Washington D.C. The Leagues are the only Leagues with a full time staff dedicated to working with Congress, Government Agencies, and Federal Regulators. The resources in this area will help you keep informed of the latest developments and credit union priorities.
State Government Advocacy efforts brings the voice of credit unions to Sacramento and Carson City. Our advocacy team works daily with elected officials, staff, the executive offices, gubernatorial appointees, and the decision-makers of California and Nevada. This area will keep you updated on all advocacy efforts at the state level of Government.
Top concerns include:
The proposed risk-based capital system for credit unions is more onerous and restrictive than Basel III is for community banks.
Under NCUA’s proposal, many California and Nevada credit unions may maintain their well-capitalized classification, but they may see a significant decrease in their buffer to being “well capitalized.”
For federally insured credit unions in California and Nevada to maintain their current buffer under NCUA’s proposed risk-based capital system, an additional $713.3 million in capital is needed—whereas under the Basel III system, the deficit is $187 million. NCUA’s proposed rule would result in increased capital requirements for federally insured credit unions in California and Nevada that is four times as much as would be required under Basel III.
Under the Basel III system, 62 percent of all federally insured credit unions in California and Nevada would have a higher capital ratio and maintain their existing—or have a greater capital buffer—to being “well capitalized.” For federally insured credit unions with assets greater than $40 million, that number changes to 69 percent (71 percent for California federally insured credit unions and 39 percent for those in Nevada).
The California and Nevada Credit Union Leagues set a goal of 150 comment letters from California and Nevada credit unions. Your voice can make a difference and help formulate a better, more sensible risk-based capital rule. If you have not already done so, the Leagues encourage you to submit a comment letter to the NCUA on this important issue by the May 28 deadline.
Visit PowerComment today for additional resources and to submit your comment letter. When using PowerComment, the Leagues and Credit Union National Association (CUNA) are automatically copied on your letter.
In addition to submitting a comment letter, be sure to register and attend the NCUA Listening Session on June 26 in Los Angeles. Although the comment deadline will have passed, the NCUA has indicated they will also listen to and consider comments made at the scheduled Listening Sessions.
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