OCUL applauds the CCULR option; warns against over capitalization
Published by: Sean Brown
October 21, 2021 | Regulatory
As successful financial cooperatives serving more than three million Ohioans, credit unions should have the freedom to leverage options in independent decision-making to drive better service and outcomes for members; however, the options presented need to make sense. The National Credit Union Administration (NCUA) recently proposed several portfolio management options through the Complex Credit Union Leverage Ratio (CCULR) rule. The CCULR rule attempts to simplify the measure of capital adequacy for qualifying credit unions, $500 million or more in assets meeting a specialized set of criteria, to opt into the program.
The League supported the relief participating complex credit unions would receive from calculating the risk-based capital ratio; however, the rationale behind ten percent being designated as well-capitalized continues to follow an ongoing NCUA pattern of over capitalization requirements from the statutorily designated seven percent threshold. As a result, the League called on NCUA to consider decreasing the capitalization requirement from ten percent to nine percent. Doing so would align credit union regulation with other banking standards while retaining available options and preserving priorities based on operational preferences.
Read the full letter and connect with the League’s Director of Regulatory Affairs, Sean Brown, for any questions or concerns regarding the proposed CCULR rule.
Contact Sean Brown for questions or assistance.