At its sixth open meeting of 2019, NCUA approved a proposed rule delaying the effective date of its risk-based capital rule to January 01, 2022. Comments on the proposed rule must be received within 30 days after publication in the Federal Register. During the extended delay period, the NCUA’s current prompt corrective action requirements would remain in effect.
The proposed delay will provide the NCUA Board time to holistically consider additional improvements to credit union capital standards, such as subordinated debt authority, capital treatment for asset securitization, and a community bank leverage ratio equivalent for credit unions. It also will give the agency time to integrate changes into the rule before it goes into effect.
The Board approved the risk-based capital rule at its October 2015 meeting and scheduled it to go into effect January 01, 2019. At its October 2018 meeting, the Board unanimously approved a rule that delayed the effective date to January 01, 2020 and raised the asset threshold for a complex credit union from USD 100 million to USD 500 million. Based on Call Report data from the end of 2018, if the risk-based capital rule of NCUA were to go into effect today, 545 complex credit unions would be subject to its requirements and more than 99% of all complex credit unions would be considered well-capitalized.
Related Link: Press Release
Comment Due Date: FR + 30 Days
Effective Date: January 01, 2022
Keywords: Americas, US, Banking, Credit Unions, Risk-Based Capital Rule, NCUA
Previous ArticleAPRA Revises Standard on Margin Rules for Uncleared Derivatives
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.