NCUA to Turn off Risk-Based Calculator at Close of Comment Period
ALEXANDRIA, Va. (April 3, 2014) – The National Credit Union Administration is reminding parties interested in commenting on the agency’s proposed risk-based capital rule that they have until May 28 to provide those comments.
At the January open Board meeting, the NCUA Board unanimously approved the risk-based capital proposed rule, which would apply to credit unions with assets greater than $50 million. The Board also provided for an extended 90-day comment period.
At the time the Board approved the proposed rule, NCUA released an online Risk-Based Capital Calculator. The calculator allows federally insured credit unions and other stakeholders to determine the effects of the proposed rule. When the comment period ends, NCUA will remove the calculator from the agency’s website and consider changes to the rule based on the comments.
After the NCUA Board approves a final rule, the agency will modify the Call Report to comply with the terms of the new rule and provide Prompt Corrective Action classifications accordingly.
NCUA plans an extended phase-in period for the final risk-based capital rule to allow credit unions enough time to adjust their risk profiles or capital levels, or both, to ensure compliance with the new regulation.
NCUA is the independent federal agency created by
the U.S. Congress to regulate, charter and supervise
federal credit unions. With the backing of the full
faith and credit of the United States, NCUA operates
and manages the National Credit Union Share
Insurance Fund, insuring the deposits of more than
98 million account holders in all federal credit
unions and the overwhelming majority of
state-chartered credit unions. At
Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.