§702.101. Capital measures, capital adequacy, effective date of classification, and notice to NCUA.
12 C.F.R. § 702.101
Capital measures. For purposes of this part, a credit union must determine its capital classification at the end of each calendar quarter using the following measures:
The net worth ratio; and
If determined to be applicable under § 702.103, either the risk-based capital ratio under § 702.104(a) through (c) or the CCULR framework under § 702.104(d).
Capital adequacy.
Notwithstanding the minimum requirements in this part, a credit union defined as complex must maintain capital commensurate with the level and nature of all risks to which the institution is exposed.
A credit union defined as complex must have a process for assessing its overall capital adequacy in relation to its risk profile and a comprehensive written strategy for maintaining an appropriate level of capital.
Effective date of capital classification. For purposes of this part, the effective date of a federally insured credit union's capital classification shall be the most recent to occur of:
Quarter-end effective date. The last day of the calendar month following the end of the calendar quarter;
Corrected capital classification. The date the credit union received subsequent written notice from NCUA or, if state-chartered, from the appropriate state official, of a decline in capital classification due to correction of an error or misstatement in the credit union's most recent Call Report; or
Reclassification to lower category. The date the credit union received written notice from NCUA or, if state-chartered, the appropriate state official, of reclassification on safety and soundness grounds as provided under § 702.102(b) or § 702. 202(d).
Notice to NCUA by filing Call Report.
Other than by filing a Call Report, a federally insured credit union need not notify the NCUA Board of a change in its capital measures that places the credit union in a lower capital category;
Failure to timely file a Call Report as required under this section in no way alters the effective date of a change in capital classification under paragraph (b) of this section, or the affected credit union's corresponding legal obligations under this part.
Notes, amendments, and revision history
Amendments
[80 FR 66706, Oct. 29, 2015, as amended at 86 FR 72804, Dec. 23, 2021]
Source
Source: 80 FR 66706, Oct. 29, 2015, unless otherwise noted.
Authority
Authority: 12 U.S.C. 1757(9), 1766(a), 1784(a), 1786(e), 1790d.
Source
Source: 65 FR 8584, Feb. 18, 2000, unless otherwise noted.
Amendments
[80 FR 66706, Oct. 29, 2015, as amended at 86 FR 72804, Dec. 23, 2021]