Skip to main content

NCUA Launches Risk-Based Capital Calculator

By Heather Anderson
January 23, 2014

Fresh off the heels of its proposed risk-based capital rule, the NCUA Thursday launched a new online tool to help credit unions gauge their ability to comply.

The Risk-based Capital Calculator provides users a comprehensive overview of a credit union’s capital ratio and Prompt Corrective Action category under both the current rule and the proposed regulation, the NCUA said in a release. Those capital numbers would be visible to the public as well as credit unions.

Although the proposed rule would only apply to credit unions with assets of more than $50 million, the risk-based calculation tool is available to all federally insured credit unions. Users can search for a specific credit union by name or by charter number.

After selecting a credit union to review, users can see each component of that particular credit union’s risk-based capital ratio. Users also can click on the “formula” icon located by each individual component to see what data from the Call Report are used and how the proposed risk-weights are applied at each point in the ratio calculation.

This level of transparency will ultimately lead to a better final rule, the NCUA said.

Credit unions of all asset sizes are encouraged to utilize the calculator during their review of the proposed changes for calculating risk-based capital.

The calculator is available on the NCUA’s website; an accompanying instructional video is available on the regulator’s YouTube channel.

NCUA Launches Risk-Based Capital Calculator

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Let the Truth be Told - Why a New NCUA Rule Could Jolt Credit Union Innovation

The National Credit Union Administration has finalized a rule to improve board and executive succession planning within the credit union industry. This strategic move aims to curb the trend of mergers driven by technological stagnation and poor succession strategies, ensuring more credit unions maintain their independence and enhance their technological capabilities. By Ken McCarthy, Manager of marketing communications at Tyfone Credit unions are merging out of existence because of an inability to invest in technology, the National Credit Union Administration Board wrote when introducing its now finalized rule on board succession planning. The regulator now requires credit unions to establish succession planning for critical positions in their organizations. But it’s likely to have even wider effects, such as preserving more independent charters and shaking up the perspectives of those on credit union boards. “Voluntary mergers can be used to create economies of scale to offer more or ...
Post a Comment
Read Complete Article HERE>»

Armand Parvazi MBA CUDE - Last Friday marked his last day with New Orleans Firemen’s Federal Credit Union.

It’s been an incredible journey, but it’s bittersweet to announce that Friday marked my last day with New Orleans Firemen’s Federal Credit Union. We've accomplished so much together in my six years as Chief Administrative and Development Officer. Some of the highlights: Implemented a data-driven marketing strategy that delivers over 1,800% annual ROI. Developed automated triggers to ensure members receive the right offers at the right time. Grew assets by 61% and increased products per new member from 1.88 to 2.62. Converted online banking to enhance the member experience. Introduced a loan origination system for faster and more efficient loan processing. Transitioned to a mobile-first financial institution to meet members where they are. Pioneered the first Cancer Care loan pause program in the nation (in collaboration with Andy Janning ) Secured nearly $17 million in grants for our impactful work. Expanded our field of membership to 35 parishes and counties and added numerous fi...
Post a Comment
Read Complete Article HERE>»

Biggest Social Security Changes for 2025

  Chris Gash Facebook Twitter LinkedIn Monthly payments are going up, and drop-in service at SSA offices is largely going away The  cost-of-living adjustment  (COLA) may be the most widely anticipated way Social Security changes from year to year, but it’s far from the only one. Inflation, wage trends and new policies directly affect not just the more than 68 million people receiving Social Security benefits but also the estimated 184 million workers (and future beneficiaries) paying into the system.  Here are seven important ways Social Security will be different in 2025. 1. Cost-of-living adjustment Inflation continued to cool this year , resulting in a  2.5 percent COLA  for 2025 for people receiving Social Security payments, down from  3.2 percent in 2024 . The estimated average retirement benefit will increase by $49 a month, from $1,927 to $1,976, starting in January, according to the Social Security Administration (SSA). It’s the lowest COLA i...
Post a Comment
Read Complete Article HERE>»