An Update on the NCUA’s Risk Based Capital Rule

Sources in Washington tell us that the National Credit Union Administration (NCUA)’s Office of Examination and Insurance is in the process of modifying the Call Report and is going to release the new version sometime after October. They will finalize it pending input received during the Comment Period on the Complex Credit Union Leverage Ratio proposed rule, which closes October 15, 2021. While the NCUA Board may not finalize that proposed regulation, according to NCUA, information provided by credit unions is a critical part of this process. NCUA staff directly said, “comments will help refine the final product and guide what the form will capture.”

Additionally, the NCUA is planning an industry webinar, an updated website containing information about the new process, and other communications. It was emphasized that Risk Based Capital (RBC) does not become effective until January 1, 2022 and new RBC-sensitive data will not be collected until the March 31, 2022 Call Report, so credit unions will still have some ramp up time before this becomes live.