Risk-Based Capital, 12 CFR 702.101(b)

ICR 201807-3133-001

OMB: 3133-0191

Federal Form Document

Forms and Documents
Document
Name
Status
Supplementary Document
2018-08-02
Supporting Statement A
2018-08-02
ICR Details
3133-0191 201807-3133-001
Active 201501-3133-002
NCUA EI
Risk-Based Capital, 12 CFR 702.101(b)
New collection (Request for a new OMB Control Number)   No
Regular
Approved without change 08/07/2018
Retrieve Notice of Action (NOA) 08/02/2018
  Inventory as of this Action Requested Previously Approved
08/31/2021 36 Months From Approved
1,489 0 0
59,560 0 0
0 0 0

Amendments to 12 CFR 702 (October 29, 2015; 80 FR 66626), regarding prompt corrective action (PCA), require that credit unions taking certain risks hold capital commensurate with those risks. This final rule restructures the NCUA’s PCA regulations and makes various revisions, including amending the agency’s current risk-based net worth requirement by replacing it with a new risk-based capital requirement for complex credit unions. The risk-based capital provisions of this final rule apply only to federally insured, natural-person credit unions (credit unions) with assets greater than $100 million. Section 216(d) of the Act (12 U.S.C. 1790d (d)) addresses the risk-based net worth requirement for complex credit unions. Accordingly, §702.103 defines “complex” and the risk-based capital requirement is applicable only if the credit union’s quarter-end total assets are greater than $100 million. Section 702.101(b) requires that a credit union defined as complex has 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. The NCUA will use the information to ensure a credit union’s capital is sufficient given its risk profile.

US Code: 12 USC 1790d(d) Name of Law: Federal Credit Union Act
  
None

3133-AD77 Final or interim final rulemaking 80 FR 66626 10/29/2015

Yes

1
IC Title Form No. Form Name
Capital Adequacy - Complex Credit Unions
Risk Based Capital Written Policy for Non-Complex Credit Unions

  Total Approved Previously Approved Change Due to New Statute Change Due to Agency Discretion Change Due to Adjustment in Estimate Change Due to Potential Violation of the PRA
Annual Number of Responses 1,489 0 0 6,588 -5,099 0
Annual Time Burden (Hours) 59,560 0 0 161,540 -101,980 0
Annual Cost Burden (Dollars) 0 0 0 3,252,142 -3,252,142 0
Yes
Changing Regulations
No
There has been a slight increase to the number of respondents from what was reported at the time of the proposal. An increase of 34 credit unions is due to the increase of their assets size, which are now identified as complex. The proposal also included burden assigned to non-complex credit unions. This burden has been removed because this information collection requirement only applies to complex credit unions. No burden is imposed on non-complex credit unions. A reduction of 101,980 burden hours is attributed to this adjustment.

$0
No
    No
    No
No
No
No
Uncollected
Julie Cayse 703 548-2142 jcayse@ncua.gov

  No

On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
 
 
 
 
 
 
 
    (i) Why the information is being collected;
    (ii) Use of information;
    (iii) Burden estimate;
    (iv) Nature of response (voluntary, required for a benefit, or mandatory);
    (v) Nature and extent of confidentiality; and
    (vi) Need to display currently valid OMB control number;
 
 
 
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
08/02/2018


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