As part of new ‘complex leverage ratio’ rule, credit union agency revises 1Q call report

Changes in risk-based capital requirements for federally insured credit unions have triggered changes in call reports, effective for the first quarter of 2022, the federal credit union regulator said Monday.

In a release, the National Credit Union Administration (NCUA) said it is revising its call report (Form 5300) starting with the March 2022 reporting cycle. The changes were spurred by the adoption last month of a new Complex Credit Union Leverage Ratio (CCULR) rule, which took effect Jan. 1.

The CCULR is aimed at creating a framework which allows “complex” credit unions (those with more than $500 million in assets) opting in to maintain the CCULR instead of risk-based capital (which also took effect Jan. 1). Under CCULR, a complex credit union may qualify to opt in to the CCULR framework if it has a minimum net worth ratio of 9%. The minimum requirement for a classification of “well capitalized” under the CCULR framework – modeled on federal banking agencies’ community bank leverage ratio (CBLR) – is higher than the 7% minimum ratio required under prompt corrective action (PCA) but lower than the 10% required under risk-based capital.

The CCULR final rule also amends provisions of the 2015 risk-based capital final rule. NCUA has noted that, based on June 30, 2021, call report data, about 70% of complex credit unions (down from 90% pre-pandemic) qualify to use the CCULR framework and would be well capitalized under a 9% calibration.

The agency said the revised call report is part of its 2016 “Call Report Modernization Initiative,” which it said “examined how changes to the agency’s data collection practices could enhance the value of the data NCUA collects from credit unions for offsite monitoring and pre-examination planning as well as reduce the reporting burden for credit unions where appropriate.”

5300 Call Report Form

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