Links in “Risk-Based Capital”
- CUNA Claims Risk-Based Capital Proposal Could Cut Credit Union Capital Buffers by Billions
According to Bill Hampel, CUNAâs Chief Economist, the NCUAâs proposed risk-based capital rule could force credit unions to increase their capital levels by a net of $7.3 billion in order to maintain their current margins above the well-capitalized threshold at a time when credit unions are faced with lower rates and moderate loan growth. [2/10]
- Risk-Based Rule Hurts MBL Biz Model
Under NCUAâs proposed Risk-Based Capital Rule, credit unions with concentrations in member business loans will have to maintain a capital level of 14%. The result is that a number of credit unions that are now well-capitalized or adequately-capitalized will become undercapitalized under the new rule. [2/6]
- Analysis of NCUA’s Proposed Rule on Risk-Based Capital
30,000-foot level analysis of the NCUA's proposed rule on risk-based capital, as approved during its January board meeting. [1/31]
- NCUA Establishes Risk-Based Capital Calculator
An online calculator developed by NCUA allows credit unions to see how the proposed risk-based capital requirements will affect their individual ratios. The calculator can be accessed at http://rbnw.ncua.gov. [1/27]
- NCUA Approves Troubling Proposed Risk-Based Capital Rule
Yesterday, the NCUA Board approved a proposed rule that would require federally-insured credit unions with assets of more than $50 million to maintain risk-based capital ratios between 8.0% and 10.49% in order to be classified as well-capitalized. Most troubling are provisions that would assign a 250% risk-weight to investments in CUSOs and mortgage servicing assets. [1/24]
- CUNA Notes Concerns About Risk-Based Capital Rule
The NCUA Board will be considering a proposed rule on risk based capital at todayâs board meeting, but CUNA Deputy General Counsel Mary Dunn has concerns. While CUNA supports net worth-standard changes designed to better reflect risk, Dunn says that the new requirements should not just be an addition to the current system. [1/23]
- NCUA Posts January Board Meeting Agenda
The NCUA Board will be considering a proposed rule on risk-based capital at its meeting next week. NCUA Chair Debbie Matz says that the industry needs a flexible and forward-looking approach to net worth standards. [1/17]
- New Bank Net Worth Rule Is Likely Precursor of NCUA Rule Change
The OCC and the Federal Reserve Board have issued a new rule that increases risk-based capital requirements and revises methodologies for determining risk-weighted assets. It is expected that NCUA will adopt a similar rule later this year. The agency was quoted earlier this year saying that it would likely rise the net worth requirements for credit unions with assets of more than $50 million. [10/14]
- Former NCUA Chair to Present Webinar on Meeting Rising Compliance Challenges
Webinar to include presentations from former NCUA chairman Dennis Dollar on the upcoming risk-based capital proposal, as well as presentations on upcoming significant rule changes and options for compliance for credit unions with limited resources; webinar is free. [8/28]
