A proposed rule on a “complex credit union leverage ratio” is slated for consideration during next week’s open meeting of the National Credit Union Administration (NCUA) Board.
The meeting, set for 10 a.m. next Thursday, will also address a request for information and comment on digital assets and related technologies; and the agency’s 2022-2026 strategic plan, the agency said in a posted meeting notice.
The proposed rule for a complex credit union leverage ratio (CCULR) would follow the agency’s January advance notice of proposed rulemaking (ANPR) on simplified risk-based capital requirements. That ANPR, with a public comment period that closed in May, suggested two approaches to simplification: replacing the risk-based capital rule with a risk-based leverage ratio (RBLR) requirement, which uses relevant risk attribute thresholds to determine which complex credit unions would be required to hold additional capital (buffers); or retain the 2015 risk-based capital rule but enable eligible complex federally insured credit unions to opt in to a CCULR framework to meet all regulatory capital requirements.
It appears the agency proposes to focus on the second approach. The CCULR, based on the January notice, would be modeled on the “community bank leverage ratio” (CBLR) framework available to certain banks under rules implementing the 2018 financial regulatory relief statute.