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ARTICLE · 19 AUGUST 2021

Comment Deadline Set For NCUA's Proposed Leverage Ratio For Complex Credit Unions

Hogan Lovells Cadwalader
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Comments on the proposal must be received by October 15, 2021.

United StatesFinance and Banking

A National Credit Union Administration ("NCUA") board proposal to establish a simplified method of measuring capital adequacy for credit unions that are classified as complex (i.e., those with over $500 million in total assets) was published in the Federal Register.

As previously covered, the proposed rule would amend the NCUA's October 2015 risk-based capital final rule to, among other things: (i) address asset securitizations that are issued by credit unions, (ii) explain the treatment of off-balance sheet exposures, (iii) remove from a complex credit union's risk-based capital numerator certain mortgage servicing assets, (iv) update certain definitions relating to derivatives and (v) clarify how a consumer loan is defined.

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