Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
British regulator tightens CU rules
LONDON, England (11/12/09)--The Financial Services Authority (FSA), the regulator of all providers of financial services in the United Kingdom, intends to tighten rules for England’s credit unions by increasing their minimum capital requirements. Increasing capital and liquidity requirements will offer better protection for members and help credit unions avoid failures and defaults, analysts said (Reuters via The New York Times Nov. 11). Under the changes proposed Wednesday, smaller credit unions need to meet a minimum capital-to-assets ratio of 3%. Currently they only need to be solvent. The National Credit Union Administration’s standard is 7% in the U.S. The changes also would raise start-up capital requirements to about $16,500 for small credit unions and about $83,000 for large credit unions. The changes also would raise the minimum liquidity requirement to 10% of total liabilities for credit unions. The rules changes also aim to bolster governance standards. The FSA cites poor governance as a key reason for the failure of credit unions. The changes would go in effect during the second quarter 2010 and be phased in over two to three years.


RSS





print
News Now LiveWire
Registration lottery for #CreditUnion #CherryBlossom Ten Mile Run opens Monday, Dec. 1 http://t.co/AGkKPof5Fy. Race is April 12
9 hours ago
The turkey hasn't even been served and #creditunions are already making plans for #GivingTuesday
10 hours ago
.@bankofamerica's $16.65 billion 'toxic mortgage' settlement finalized http://t.co/BIq1QyImXG
11 hours ago
RT @CUNA: #NussleReport: ICYMI: Revised RBC proposal in January w/a 90-day comment period #Fix RBC http://t.co/T4JcvWBDse
13 hours ago
.@TheNCUA release on Nov. prohibition orders out already. Here: http://t.co/YkA1QIYbYa
13 hours ago