Mon, Nov 9, 2015
Credit union managers, staff and boards can learn more about the National Credit Union Administration’s risk-based capital rule and what to expect during its three-year implementation period in a new video released today by the agency.
The video, available here, provides a summary of the rule’s framework, the changes that were made during the rulemaking process, and an overview of NCUA’s implementation plan. Credit unions can find additional materials, including an impact analysis and a risk-based capital estimator tool to determine how the rule will affect their operations, on the agency’s Risk-Based Capital resource page.
The rule applies to the 24 percent of federally insured credit unions with $100 million or more in assets. The 76 percent of credit unions with less than $100 million in assets are exempt from the final rule. The final rule strengthens the safety and soundness of the credit union system by targeting a small number of high-risk ‘outlier’ credit unions that pose a potential risk of losses to the Share Insurance Fund.
NCUA’s Board approved the final risk-based capital rule at its October open Board meeting. The rule becomes effective Jan. 1, 2019, to coincide with the full phase-in of the risk-based capital rules of federal banking agencies.