ALEXANDRIA, Va.–NCUA has launched a new publication that seeks to identify the benefits, best practices, regulatory requirements and common pitfalls of using secondary capital.
The publication, Secondary Capital Best Practices, was developed by NCUA’s Office of Small Credit Union Initiatives.
Secondary capital is limited to federally insured credit unions with a low-income designation and can be used as a means of building capital.
In the new publication, NCUA stresses that secondary capital is not a cure-all for any credit union experiencing financial or operational problems, nor can it supplant the due diligence and planning necessary to grow in a safe and sound matter.