Risk Based Capital and The 10th Risk

After careful review of the new 198 page Risk Based Capital rule, CU*Answers has compiled a white paper focusing on a number of sections of the rule including the discretionary ability of the NCUA to increase a credit union’s minimum RBC requirement.    Patrick Sickels and I collaborated on this white paper to detail the nuances of this important facet of the regulation in hopes that it will spur industry discussion and give credit union leaders more information to consider when commenting to the NCUA.     The white paper contains recommendations for credit unions to actually perform a risk assessment revolving around 10 specific areas of the regulation while understanding the consequences of being placed into PCA based upon examiner “experience and expertise.”  Enjoy the read… Risk Based Capital “The 10th Risk”