American credit unions aren't subject to international capital requirements, but changes to these requirements could prompt the U.S. government to allow supplemental capital.
The Basel Committee on Banking Supervision is considering increasing the capital requirements of banks that operate internationally and could release final rules later this year. The proposals discussed would require banks to double their capital levels. According to an analysis by Swiss bank UBS, financial institutions covered by the rules could be forced to raise as much as $375 billion in additional capital.
Some credit unions in foreign countries have to comply with Basel rules. WOCCU fears that the changes could increase their regulatory burden or cause some countries that exempt CUs to mandate compliance.
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