Video answers questions about proposed risk-based capital rule

This story appeared in Bank Digest.

The National Credit Union Administration has released a two-part, 20 minute video explaining its proposed risk-based capital rule. The free video, available on NCUA's YouTube channel, is intended to help credit unions understand how and why NCUA's proposal differs from the Federal Deposit Insurance Corporation's rule and Basel III. Introduced by Chairman Debbie Matz, the video provides an in-depth review of why the rule is needed and how credit unions would fare under both the current risk-based net worth system and the proposed risk-based capital rule.

"NCUA's risk-based capital proposal is complex, but its overall purpose is simple," NCUA Board Chairman Debbie Matz said. "This proposal has generated a great deal of discussion, and some misinformation, so we are providing the new video during the comment period to explain why a rule is necessary and how it would affect credit unions." Those interested in commenting on NCUA's proposed risk-based capital rule have until May 28, 2014.