1.8 Million Reasons To Comment On The Risk-Based Capital Rule

With NCUA’s proposed risk-based capital rule, banks come out on top.


NCUA’s proposed risk-based capital formula would require a credit union to keep 128% higher capital level — $1.8 million per $100 million of assets — than a bank with the same asset level and balance sheet composition. That's a problem because the only way credit unions can raise capital is by charging more on loans or paying less on savings, so the rule would require credit unions to offer terms on loans and deposits that are less attractive than their banking counterparts.


May 5, 2014



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