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Comments due: NCUA (ANPR; simplification of risk-based capital requirements)

May 10

Tbhe National Credit Union Administration (NCUA) Board is soliciting comments on two approaches to simplify its risk-based capital requirements. The board’s risk-based capital requirements are set forth in a final rule dated October 29, 2015, which is currently scheduled to become effective on January 1, 2022. The delayed effective date has provided the board with additional time to evaluate the capital standards for federally-insured credit unions (FICUs) that are classified as “complex” (those with total assets greater than $500 million). The first approach would replace the risk-based capital rule with a Risk-based Leverage Ratio (RBLR) requirement, which uses relevant risk attribute thresholds to determine which complex credit unions would be required to hold additional capital (buffers). The second approach would retain the 2015 risk-based capital rule but enable eligible complex FICUs to opt-in to a “complex credit union leverage ratio” (CCULR) framework to meet all regulatory capital requirements. The CCULR approach would be modeled on the “community bank leverage ratio” (CBLR) framework available to certain banks.

Reg lookup: Simplification of risk-based capital requirements


May 10
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