In light of revised NCUA capital requirements and stress tests for larger credit union slated for February 2015, the $29.1 billion State Employees' Credit Union in Raleigh, N.C., has adopted a new capital plan commensurate with new published NCUA guidelines.
SECU said its new plan focused on three primary areas, with careful attention given to assure no gaps exist in the plan.
The plan's strategic discussion of the credit union's business included a business overview, a summary of recent financial performance, relevant aspects of business strategy, and a description of risk profile and risk management overview.
Other key elements of the plan included a comprehensive capital planning process, highlighting capital policy and capital planning practices, governance, internal control framework, and short- and long-term plans for improvement, according to SECU.
The new plan's capital planning forecast and consolidated results also included an overview of economic scenarios, detailed financial results under baseline and stress conditions, and key assumptions and sensitivities, the credit union said.
“Having an adequate capital plan which meets our insurance examiner's requirements is paramount as our credit union prepares for impending stress tests in the coming year,” Mike Lord, SECU's CFO, said. “We are pleased that Promontory, a leader in the capital planning field, worked with us on this project, and look forward to NCUA's concurrence of the plan's adequacy.”
To assist in the plan's development, SECU said it contracted with Washington-based Promontory Financial Group, a strategy, risk management and regulatory compliance consulting firm led by former Comptroller of the Currency Eugene Ludwig.
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