NCUA Approves Delay of Risk-Based Capital Rules Until January 2022

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

• Press Release
• Final Rule (PDF)

Effective Date: January 01, 2022

Keywords: Americas, US, Banking, Credit Unions, Risk-Based Capital Rule, Regulatory Capital, NCUA