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
APRA Updates Validation and Derivation Rules in September 2020
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC Proposes Frameworks for Crypto-Assets and Operational Resilience
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB Publishes Opinion on Proposals to Amend Securitization Framework
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA Consults on Regulation of International Firms in UK
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS Amends Notice on Capital Adequacy Requirements of Banks
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA to Begin to Move Firms to New Data Collection Platform RegData
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA Expects IBOR Fallbacks to be Effective by End of January 2021
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA Reviews Repayment Deferral Plans, Identifies Best Practices
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs Assess Risks to Financial Sector After COVID-19 Outbreak
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE Confirms Withdrawal of COVID Corporate Financing Facility
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
