Risk Weights at a Glance

Numerator

Equity Risk Weights
Undivided earnings 100%
Regular reserves 100%
Appropriations for non-conforming investments 100%
Other reserves 100%
Equity acquired in merger 100%
Net income 100%
Additions Risk Weights
Allowance for credit losses 100% (no cap)
Subordinated debt in accordance with §702.407 100%
Section 208 assistance included in net worth as defined in §702.2 100%
Deductions Risk Weights
NCUSIF capitalization deposit -100%
Goodwill (less excluded goodwill) -100%1
Other intangible assets (less excluded other intangible assets) -100%1
Identified losses not reflected in the RBC numerator -100%
Mortgage servicing assets in excess of 25% of RBC numerator (carry value) -100%

Denominator

Cash or Deposits in Financial Institutions Risk Weights
Cash, currency and coin, including vault, ATM, and teller cash 0%
Insured balances at FDIC-insured depositories or FICUs 0%
Uninsured balances at FDIC-insured depositories, FICUs, and balances at privately-insured CUs 20%
Balances due from uninsured institutions or deposits not risk-weighted 0% or 20% 100%

Investments 

Securities Risk Weights
Direct unconditionally guaranteed obligations of U.S. (government, central bank, agency) 0%2
Obligations of supranational entities and multilateral development banks 0%
Conditionally guaranteed obligations of U.S. (government, central bank, agency) 20%3,4
Obligations of GSEs other than equity or preferred stock 20%3,4
Securities issued by PSEs that represent general obligation securities 20%
Part 703-compliant securities holding only 0% or 20% risk weight investments 20%
Securities issued by PSEs in the U.S. that represent revenue obligation securities 50%4
Other non-U.S. government agency or non-GSE guaranteed RMBS 50%3,4
Industrial development bonds 100%
Interest-only MBS strips 100%
Part 703-compliant investment securities 100%5
Corporate debentures and commercial paper 100%
GSE equity exposure or preferred stock 100%
Non-subordinated tranche of any investment security 100%6
Publicly-traded equity investments (non-CUSO) 100% or 300%
Investment securities not compliant with Part 703 300%5
Subordinated tranche of any investment security 1,250%6
Other Investments Risk Weights
Federal Reserve Bank stock and Central Liquidity Facility stock 0%
Part 703-compliant funds holding only 0% or 20% risk weight investments (non-security) 20%
Federal Home Loan Bank stock 20%
Part 703-compliant investment funds (non-security) 100%5
Corporate non-perpetual capital (membership capital) 100%
Charitable donation accounts 100%
Corporate perpetual capital (paid-in capital) 100%7 or 150%
Equity investments in CUSOs 150%
Investment funds not compliant with Part 703 (non-security) 300%5
Non-publicly traded equity investment (non-CUSO) 100% or 400%
Subordinated tranche of any investment fund (non-security) 1,250%6
Non-security beneficial interests (includes CEIO equity tranche of securitization) 1,250%

Loans

First Liens Risk Weights
Current 1st-lien residential real estate loans < 35% of assets 50%8
Current 1st-lien residential real estate loans > 35% of assets 75%8
Non-current 1st-lien residential real estate 100%
Junior Liens Risk Weights
Current junior real estate loans < 20% of assets 100%8
Current junior real estate loans > 20% of assets 150%8
Non-current junior real estate loans 150%
Consumer Loans Risk Weights
Share-secured loans (deposits held in-house) 0%
Share-secured loans (deposits held in another financial institution) 20%
Government-guaranteed portion of loan balances 20%
Current secured, non-guaranteed consumer loans 75%
Current unsecured, non-guaranteed consumer loans 100%
Non-current consumer loans 150%
Commercial Loans Risk Weights
Paycheck Protection Program loans 0%
Commercial loan balances secured by compensating balances 20%
Current commercial loans < 50% of assets 100%9
Current commercial loans > 50% of assets 150%9
Non-current commercial loans 150%

Other Assets

Denominator Deductions Risk Weights
NCUSIF capitalization deposit 0%10
Goodwill 0%10
Other intangible assets (excludes mortgage servicing assets) 0%10
Mortgage servicing assets in excess of 25% of RBC numerator (carry value) 0%10
Other Assets Risk Weights
Loans to CUSOs (unconsolidated only) 100%
General account permanent insurance 100%
All other assets listed on the statement of financial condition without a specified risk 100%
Equity investments in CUSOs (unconsolidated only) 100%11 or 150%
Mortgage servicing assets up to 25% of RBC numerator (carry value) 250%
Separate account insurance 300%12
Subordinated tranche of any investment classified as other assets 1,250%13

Off-Balance Sheet Exposures

Loans Transferred Credit Conversion Factors / Risk Weights
1st-lien residential real estate loans transferred with recourse 100% / 50%
Junior-lien real estate, commercial loans, and all other unsecured loans transferred with recourse 100% / 100%
All other secured consumer loans transferred with recourse 100% / 75%
Loans transferred to FHLB under the Mortgage Partnership Finance Program 20% / 50%
Commitments Credit Conversion Factors / Risk Weights
Conditionally cancelable unfunded commercial loan commitments 50% / 100%
Conditionally cancelable unfunded 1st-lien residential real estate loan commitments 10% / 50%
Conditionally cancelable unfunded junior-lien real estate loan commitments 10% / 100%
Conditionally cancelable unfunded secured consumer loans 10% / 75%
Conditionally cancelable unfunded unsecured consumer loans 10% / 100%
Other Off-Balance Sheet Exposures Credit Conversion Factors / Risk Weights
Financial standby letters of credit 100% / 100%
Forward agreements that are not derivative contracts 100% / 100%
Sold credit protection through guarantees 100% / 100%
Sold credit protection through credit derivatives 100%14
Off-balance sheet securitization exposures 100% / 100% or Gross-up or 1,250%
Off-balance sheet securities borrowing/lending and repurchase transactions 100% / 100%14
Other off-balance sheet exposures not listed (meeting definition of commitments) 100% / 100%
Over-the-counter or centrally-cleared derivatives 15

Footnotes


1 Special handling for allowing goodwill and other intangibles related to supervisory mergers incurred prior to 2015.

2 Exclude detached security coupons and ex-coupon securities.

3 Exclude interest only.

4 Non-subordinated.

5 Option of using the look-through approach.

6 Option of using gross-up approach.

7 Subject to the non-significant equity exposure measure.

8 Includes 1- to 4-family, non-owner occupied real estate loans.

9 Excludes 1- to 4-family, non-owner occupied 1st- or junior-lien real estate loans and any loans secured by a personal use vehicle.

10 Deducted from the RBC denominator.

11 Subject to the non-significant equity exposure measure.

12 Option of using the look-through approach.

13 Option of using gross-up approach.

14 Alternatively, as defined by 12 CFR 324.

15 Risk weight determined by factors such as product type, maturity, and collateral type.

Last modified on
04/14/22