Dollar Calls On Congress To OK Risk-Based Capital

Credit Union Journal, The, March, 2003 by Ed Roberts, Washington Bureau Chief

NCUA Chairman Dennis Dollar, reacting to growing concerns about new net capital requirements for credit unions, suggested last week that Congress allow credit unions to adopt a risk-based capital system, like the ones allowed for banks and thrifts.

A risk-based system would go a long way toward addressing concerns over capital dilution caused by two years of massive savings inflows, and will better gauge the risks posed to credit unions, asserted Dollar during what may be his final appearance as NCUA Chairman at CUNA's GAC.

"There needs to be some risk-based focus approach to PCA (prompt corrective action)," said Dollar to about 3,000 attendees at the annual credit union conference.

"There is a significant difference in risk between a credit union with a net...

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