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.

Sean Brown
Sean Brown Director, Regulatory Affairs E: sbrown@ohiocul.org
Contact Us

Other Movement News

Government Affairs

Election night success for credit unions; see how the midterms impact your credit union

Thanks to your generous support throughout the 2021-2022 elections, the Ohio Movement engaged with 122 decision-makers and invested more than $570,000 in state and federal legislative champions. Your partnership led […]
Regulatory

Year end snapshot: State and federal credit union priorities

Just like your credit union, the League is hard at work ensuring a successful year end and is focused on promoting and protecting credit union interests at the Statehouse and in Congress. Here are the League’s top issues as legislators wrap up their sessions: House Bill 116, the Ohio Computer Crimes Act, would close a legal loophole that bad actors can exploit to access sensitive data and information without penalty.
Member Benefits

Tips to keep your members safe this holiday season

Help your members stay financially safe during the holiday season by downloading helpful tips in December’s Monthly Marketing Toolkit, a complimentary resource as part of your League membership.