NCUA to revive risk-based capital rule during January meeting

National Credit Union Administration Chairman Rodney Hood is looking to leave the chairmanship with a bang, if the agenda for the agency’s January board meeting is any indication.

Hood, a Republican, is expected to be replaced in the chairmanship by board member Todd Harper, a Democrat, once President-elect Joe Biden is inaugurated. While the agency normally meets on the third or fourth Thursday of each month, Hood moved the January meeting up by a week to precede Biden taking office.

Perhaps the highest-profile item on the agenda — which includes a total of nine subjects — is a proposed rule regarding risk-based net worth and complex thresholds. In December 2019, the board once again delayed implementation of the rule, this time until 2022, as part of a bid to buy itself more time for a broader overhaul of capital standards. Harper objected to the delay — echoing comments he made earlier that year — though any objections he has this time around are likely to be overruled by the Republicans’ two-to-one margin at the board, once new board member Kyle Hauptman’s vote is accounted for.

A notice of proposed rulemaking is also expected regarding simplifying risk-based capital requirements.

Along with risk-based capital, the board will discuss a proposed rule on credit union service organizations, issue a final rule on corporate credit unions and be briefed on the agency’s ACCESS Initiative, a project Hood unveiled last fall as part of an attempt to boost NCUA’s role in financial inclusion efforts. The board will also discuss a potential rule regarding the Camels rating system.

The meeting will be held remotely on Thursday.