CU*Answers, a cooperative CUSO located in West Michigan, announced that is has published its third and final article critiquing the NCUA’s revised Risk Based Capital rule (RBC2). The article continues from part two of the three-part series by addressing the Rule from a legal approach.

The article reviews the Hon. J. Mark McWatters’ dissent on RBC2, and explains why the NCUA may not have strong legal grounds for promulgating RBC2. In fact, for years the NCUA has agreed that the Agency lacks the authority to implement a two-tiered capital test and even went so far as to petition Congress for this authority in 2007, which Congress declined to provide. Per CU*Answers, should the NCUA implement RBC2 with this capital test intact, the Agency could be ripe for a legal challenge from the industry.

This final article of the three-part series concludes the CUSO’s review of RBC2. CU*Answers is also encouraging all in the credit union industry to make their voices heard by the NCUA, and has created a comment engine to assist in that endeavor.

The three-part series and the comment engine are available from the website of the audit and compliance division of CU*Answers, AuditLink.