If credit unions see a temporary surge in deposits after BankTransfer Day on Saturday, they have two options to calculate the changes totheir net worth ratio, the NCUA has reminded its examiners.
|Credit unions can calculate their net worth by using“point-in-time” assets or using a rolling average of assets.
|In its memorandum, the agency's Office of Examination &Insurance noted that for credit unions that choose the averagingmethod, the agency should “take into consideration the potentiallytransient nature of some of these deposits.”
|“However, depending on how 'sticky' the deposits are, the creditunion may only get temporary relief from the net worth effects of asuccessful Bank Transfer Day,” the memo said.
|The agency also noted to its examiners that if credit unionskeep the new deposits for several months, examiners should ensure thatthey update their capital retention plans.
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