RBC Delay Included in House Foreign Investment Bill

Would allow NCUA to delay rule's effective date to January 1, 2021 

Language to delay the NCUA's risk-based capital (RBC) rule by two years is included in the Foreign Investment Risk Review Modernization Act of 2018 (H.R. 5841) introduced in the U.S. House yesterday. House Financial Services Committee Chairman Jeb Hensarling (R-TX) was instrumental in getting the language added to the foreign investment bill.

U.S. Defense Secretary James Mattis has urged the broader legislation be included in the National Defense Authorization Act (NDAA), which is currently under consideration in the House.

The language included in H.R. 5821 comes from the Common Sense Capital Relief Act (H.R. 5288), which was introduced in March. It would allow NCUA to revisit and reconsider its approach to RBC by delaying the rule's effective date for two years to January 1, 2021. House Financial Service Committee member Rep. Tom MacArthur (R-3) from New Jersey is a co-sponsor of the bill.