|L-R: Reps. Ed Royce, R-CA, and Brad Sherman, D-CA|
CONGRESSMEN CONCERNED OVER RBC RULES
updated 04/09/14 01:18 PM
Questions Arise During Hearing
Reps. Ed Royce, R-CA, and Brad Sherman, D-CA, questioned National Credit Union Administration (NCUA) General Counsel Mike McKenna on the effectiveness of the NCUA's proposed risk-based capital rule during a House Financial Services Committee hearing last week.
Royce voiced concern that the risk weights applied to residential mortgage loans and member business loans under the proposal do not reflect actual risk, nor are they comparable to the community bank system.
Click here to view a video of Royce's questions and answers.
Sherman also showed concern during the hearing and questioned McKenna on the proposed rule's effectiveness.
The Credit Union National Association (CUNA) has said the proposed rule could prove costly for many credit unions nationwide, forcing them to collectively increase capital levels by $7.3 billion to maintain current margins above the proposed "well capitalized" thresholds.