Supplemental Capital Regulation

NCUA has publically supported legislation that would amend the Federal Credit Union Act to allow credit unions to count supplemental forms of capital toward their net worth ratio, but NASCUS believes the agency can do more for the credit union system while we pursue a legislative fix. During the first and second round of comments on the proposed risk-based capital rule, NASCUS stressed to NCUA the vital importance of including supplemental forms of capital in the risk-based capital calculation for all insured credit unions. Approving the use of supplemental capital for risk-based capital purposes would be an important first step in expanding capital access for credit unions, and could lend concrete evidence of the benefits of supplemental capital to legislative efforts aimed at net worth ratio reform. Here are a few examples of what NASCUS and NCUA have been saying about supplemental capital for credit unions: