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On-Site Coverage:NCUA to Impose Stricter Capital Requirements on Corporates

WASHINGTON -- Corporate credit unions would have to keep a 5% core capital leverage ratio to be considered well capitalized under rules that the NCUA plans to discuss later this year, NCUA Chairman Michael E. Fryzel told lawmakers today.

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WASHINGTON — Corporate credit unions would have to keep a 5% core capital leverage ratio (including a certain percentage of retained earnings) to be considered well capitalized under rules that the NCUA plans to discuss later this year, NCUA Chairman Michael E. Fryzel told lawmakers today.

In prepared testimony before the House Subcommittee on Financial Institutions and Consumer Credit, Fryzel said his agency would require that a “significant amount” of a corporate’s core capital consist of retained earnings. The rule will also include risk-weighted capital standards and require that all capital instruments qualify as Tier One or Tier Two capital.

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