New Rules Require Three Capital Ratios for Corporates
In general, the NCUA Board adopted most of the corporate capital and retained earnings requirements originally proposed in January 2009. According to final Part 704 regulations posted on the NCUA's website, corporates must now comply with three new capital ratios that include measurements of tier-one capital, retained earnings and risk.
None of the new capital requirements would apply during the first year. During this period, the current total capital ratio of 4% would remain in effect.