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. 

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.