NCUA Approves Troubling Proposed Risk-Based Capital Rule
Yesterday, the NCUA Board approved a proposed rule that would require federally-insured credit unions with assets of more than $50 million to maintain risk-based capital ratios between 8.0% and 10.49% in order to be classified as well-capitalized. Most troubling are provisions that would assign a 250% risk-weight to investments in CUSOs and mortgage servicing assets. [1/24]