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
Previous Article
PRA Statement on Regulatory Changes Impacting Calculation of SCRRelated Articles
BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
EBA Publishes Multiple Regulatory Updates for Regulated Entities
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
APRA Consults on Prudential Standard for Operational Risk
The Australian Prudential Regulation Authority (APRA) is seeking comments, until October 21, 2022, on the introduction of CPS 230, which is the new cross-industry prudential standard on operational risk management.
EC Amends Rule on Securitizations; ESRB Updates Reciprocation Measures
The European Commission published a Delegated Regulation 2022/1301 on the information to be provided in accordance with the simple, transparent, and standardized (STS) notification requirements for on-balance-sheet synthetic securitizations.
APRA Announces Revisions to Capital Framework for Banks
The Australian Prudential Regulation Authority (APRA) is announced revisions to the capital framework for authorized deposit-taking institutions to implement the "unquestionably strong" capital ratios and the Basel III reforms.
EBA Examines Remuneration Data and Use of Large Exposure Exemptions
The European Banking Authority (EBA) published a report that examines the use of certain exemptions included in the large exposures regime under the Capital Requirements Regulation (CRR).
UK Authorities Publish Discussion Paper on Critical Third Parties
The Bank of England (BoE), the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) published a joint discussion paper that sets out potential measures to oversee and strengthen the resilience of services provided by critical third parties to the financial sector in UK.
BoE Issues Update on Ongoing Data Transformation Program
The Bank of England (BoE) issued a communication to firms to provide an update on the progress of the joint data transformation program—which is being led by BoE, the Financial Conduct Authority (FCA), and the industry—for the financial sector in UK.
EBA Issues Draft Methodology and Templates for 2023 Stress Tests
The European Banking Authority (EBA) published the draft methodology, templates, and template guidance for the European Union-wide stress test in 2023.
EBA Issues SREP Guidelines and Standards for Investment Firms
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly published the final guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms.