ALEXANDRIA, Va.—Following the NCUA board’s approval of a final rule that simplifies the risk-based capital requirements for eligible, complex credit unions, NCUA has modified its Call Report Form 5300, beginning with the March 2022 reporting cycle.
The documents can be viewed on the NCUA's Call Report Modernization webpage.
Of note, NCUA posted a draft of the Call Report demonstrating the proposed changes resulting from the final rule for the Complex Credit Union Leverage Ratio (CCULR) approved on Dec. 16, 2021, NAFCU noted.
In a released statement, the agency said it is revising its Form 5300 as the result of the adoption in December 2021 of a new Complex Credit Union Leverage Ratio (CCULR) rule, which took effect Jan. 1.
Assistance for the ‘Complex’
As CUToday.info reported, CCULR is aimed at creating a framework which allows “complex” credit unions (those with more than $500 million in assets) opting in to maintain the CCULR instead of risk-based capital (which also took effect Jan. 1). Under CCULR, a complex credit union may qualify to opt in to the CCULR framework if it has a minimum net worth ratio of 9%.
As CUToday.info also reported, the minimum requirement for a classification of “well capitalized” under the CCULR framework – modeled on federal banking agencies’ community bank leverage ratio (CBLR) – is higher than the 7% minimum ratio required under prompt corrective action (PCA) but lower than the 10% required under risk-based capital.
Additional Amendment
The CCULR final rule also amends provisions of the 2015 risk-based capital final rule. NCUA has noted that, based on June 30, 2021, call report data, about 70% of complex credit unions (down from 90% pre-pandemic) qualify to use the CCULR framework and would be well capitalized under a 9% calibration.