League supports NCUA proposed rule on subordinated debt

Published by: Emily Leite

July 22, 2020 | Government Affairs, Regulatory

The ability to access additional capital is more important than ever as low-income designated credit unions (LICUs), complex credit unions, and new credit unions are at risk of being undercapitalized due to the stress put on the economy. The League recently submitted a letter in support of the National Credit Union Administration’s (NCUA) proposed rule that would update its regulations to allow eligible credit unions to issue subordinated debt for regulatory capital standards. The rule proposal would better organize certain NCUA regulations, improve clarity and transparency, and incorporate enhanced investor protections. It would also amend parts of the NCUA’s regulations to update the authority of low-income-designated credit unions to issue subordinated debt. Finally, the rule would authorize complex credit unions subject to the agency’s risk-based capital requirements and new credit unions to use subordinated debt under certain circumstances.

Please find the full comment letter on the regulatory advocacy webpage, and contact League Regulatory Counsel Chris Noble if you have questions or concerns about the proposed rule on subordinated debt.

CONTACT US

E: cnoble@ohiocul.org
T: (614) 923-9762
C: (614) 448-6237

Other Movement News

Government Affairs

A PZC update is a “win, win”

Updating your Project Zip Code (PZC) numbers for events such as Hike the Hill, virtual legislative meetings, and roundtables gives the League vital information when meeting with political leadership. This […]
Regulatory

“Eggs & Regs” bringing credit union leaders together

As the old saying goes, “the best way to a credit union leader’s heart is through their stomach.” Thus, while you look for ways to improve and expand the services, […]
Member Benefits

In-person BSA training coming soon to regional locations

Go ahead. Cross Bank Secrecy Act (BSA) training requirements off your 2022 to-do list. We are collaborating with industry experts at ViClarity to provide two regional in-person trainings coming this […]