Some corporates are low-balling their members, paying below market dividends in an attempt to increase retained earnings, Corporate America Credit Union President/CEO Thomas Bonds told Credit Union Times today.

"If the NCUA goes ahead with a 5% capital ratio, corporates have three options," Bonds said. "You can shrink the balance sheet, issue new PIC, or increase retained earnings."

Corporates that can't raise member capital have resorted to paying low dividends, which Bonds said "makes it look like you're improving, but it's really just being sneaky."

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