NCUA Approves Delay of Risk-Based Capital Rules Until January 2022
The NCUA Board held its eleventh open meeting of 2019 and approved a final rule to delay the effective date of the risk-based capital rules for credit unions to January 01, 2022. During the extended delay period, the current prompt corrective action requirements of NCUA will remain in effect. The final rule delays, until January 01, 2022, the effective date of the risk-based capital rule that was published in October 2015 (2015 final rule) and the supplemental risk-based capital rule that was published in November 2018 (supplemental rule).
The October 2015 final rule amends Part 702 of the current prompt corrective action regulations of NCUA that require credit unions taking certain risks to hold capital commensurate with those risks. The risk-based capital provisions of the 2015 final rule apply to only federally insured, natural-person credit unions with quarter-end total assets exceeding USD 100 million. NCUA had originally set the effective date of the 2015 final rule for January 01, 2019. NCUA then issued the supplemental rule in November 2018 to delay the effective date of the 2015 final rule to January 01, 2020. This supplemental rule also amended the definition of complex credit union by increasing the threshold level for coverage from USD 100 million to USD 500 million.
Post that, at the June 2019 meeting, NCUA approved another proposed rule to delay the effective date. NCUA received 29 comment letters in response to the proposed rule. Nearly all respondents supported giving credit unions additional time to comply with the requirements of the 2015 final rule. Most of these respondents also supported the Board’s plan to consider credit union capital standards holistically. Consequently, NCUA has now approved this two-year delay in the effective date for risk-based capital rules.
Related Links
Effective Date: January 01, 2022
Keywords: Americas, US, Banking, Credit Unions, Risk-Based Capital Rule, Regulatory Capital, NCUA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
BCBS Amends Guidelines on Sound Management of AML/CFT Risks
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies Finalize Amendments to Swap Margin Rule
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA Letter Sets Expectations on Approach to Managing Climate Risks
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS Publishes List of Internationally Active Insurance Groups
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC Launches Consultation on Review of Solvency II Directive
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB Consults on Supervisory Approach to Consolidation in Banking
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS on Package for 2020 Data Collection on ICS and Aggregation Method
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.
