The proposed rule promotes two options for determining the risk-weights of asset-backed investments, such as mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs). One uses the current weighted average life for mortgage-backed investments. The other assigns an arbitrary risk weighting of 1,250%. “Proposed §702.104(c)(2)(x) would require that credit unions assign a 1,250 percent risk-weight (8% […]
NCUA recently proposed a Risk-Based Capital rule that will change the way credit unions compute their risk-based capital ratio. The comment period for this proposed rule ends May 28 and many comments have already been received. We want to hear from you—is your credit union planning to submit comments on this proposed rule? Let us […]
Recently, NCUA released its proposed rule for capital planning and stress testing. Even though the regulation will only affect credit unions with assets $10 billion and above, consider your institution. How adequately prepared are you if, in the future, this rule were to be applied to credit unions under $10 billion in assets? Let us […]
Debbie Matz, NCUA Chair, recently announced in The NCUA Report that “NCUA staff is developing an approach targeted to the types of risk held by different credit unions. A net worth ratio of 7 percent would remain the floor… However, credit unions with assets over $50 million would be subject to improved risk-based capital requirements. […]
Tuesday was “Don’t Tax My Credit Union Day.” We know that credit unions do a lot to benefit their members and surrounding communities. What has your credit union done to quantify this benefit and show the positive impact to the community? Click here to take our survey.