NCUA Delays Effective Date of Risk-Based Capital Rule, Raises Asset Threshold for Complex CU

The National Credit Union Administration (NCUA) Board approved on October 18 a supplemental final rule delaying the effective date of the agency's risk-based capital rule and raising the asset threshold for defining a complex credit union.

The supplemental final rule will move the effective date of the risk-based capital rule approved in October 2015 from January 1, 2019 to January 1, 2020.

In addition, the rule will raise the current $100 million asset threshold for defining a complex credit union to $500 million.

According to NCUA staff analysis, the change in the complex credit union definition will exempt an additional 1,026 federally insured credit unions from the risk-based capital rule.

NCUA stated 531 credit unions would be subject to the agency's risk-based capital rule.

A vast majority (98.7 percent) of federally insured credit unions would have a risk-based capital ratio in excess of 10 percent, the minimum requirement to be well-capitalized. Only 7 credit unions will fall short of the 10 percent risk-based capital ratio.

The following graph reports on the distribution of complex credit unions by risk-based capital ratios.

Read the press release.