NCUA Proposes to Delay Risk-Based Capital Rule Until 2022
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 Article
APRA Revises Standard on Margin Rules for Uncleared DerivativesRelated Articles
ESAs Issue Multiple Regulatory Updates for Financial Sector Entities
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
EBA Finalizes Methodology for Stress Tests, Issues Other Updates
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
OSFI Sets Out Work Priorities and Reporting Updates for Banks
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
APRA Finalizes Changes to Capital Framework, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
BIS Hub and Central Banks Conduct CBDC and DeFI Pilots
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)
