ALEXANDRIA, Va. (5/5/14)--More credit union questions about the National Credit Union Administration's risk-based capital plan are answered by NCUA staff in a new, second YouTube video.
The video is intended to serve as a resource for federally insured credit unions to understand how the proposed changes to NCUA's Prompt Corrective Action rule may affect their risk-based capital (RBC) ratios, the agency said.
Questions addressed in the video include:
Why did NCUA propose the rule, and why now;
How many credit unions will be impacted; and
What are the differences between well-capitalized, adequately capitalized and undercapitalized credit unions under the rule.
CUNA continues to urge credit unions to weigh in on the RBC plan. The NCUA will accept comment on the proposal until May 28.
Working with CUNA's Examination and Supervision Subcommittee, CUNA is developing its own comment letter, which it says will reflect major concerns and present a range of recommendations to make the proposal workable.
The NCUA proposal would make changes to Prompt Corrective Action rules, that would replace existing risk-based net worth requirements with new risk-weighted asset and capital requirements. The rule would apply to federally insured "natural person" credit unions with more than $50 million in assets.
Use the resource links for the NCUA video and CUNA's RBC Action Center. CUNA's Action Center features a calculator to help credit unions assess how the proposal will affect their operations, a video explaining the NCUA's plan, and much more.