The NCUA won't require credit unions to adopt Basel III capital requirements, said director of Examination and Insurance Larry Fazio. However, as required by statute, he said the federal regulator will have to require credit unions maintain capital that is "comparable" what other regulators enforce.
That means updating Part 702 of NCUA Regulations, which outlines prompt corrective action and net worth requirements. Part 702 came up in rotation as part of the NCUA's three-year revolving regulatory review, but Fazio said the rule gets two years to contemplate because it's a big-ticket item.
The FDIC, the Federal Reserve and Office of the Comptroller of the Currency will also be reviewing and updating capital regulations this year.
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