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
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.