Skip to main content
United States flag An official website of the United States government
Official websites use .gov
A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Risk-Based Capital Rule to Become Effective in 2020; Asset Threshold Raised

October 2018
Risk-Based Capital Rule to Become Effective in 2020; Asset Threshold Raised

Board Action Bulletin

Board Proposes Simplifying Bylaws, Adding Clearer Guidance

ALEXANDRIA, Va. (Oct. 18, 2018) – The National Credit Union Administration Board held its ninth open meeting of 2018 at the agency’s headquarters today and unanimously approved two items:

  • A supplemental final rule that amends the agency’s 2015 risk-based capital rule to delay the effective date of the rule until Jan. 1, 2020 and raise the asset threshold for a complex credit union from $100 million to $500 million.
  • A proposed rule to clarify, update, and simplify federal credit union bylaws.

Risk-Based Capital Rule to Become Effective in 2020

Federally insured credit unions subject to the agency’s risk-based capital rule will have an additional year to prepare under a supplemental final rule approved by the Board.

“When I became Chairman, one of my priorities was to revisit the risk-based capital rule to make it less burdensome, and we have done that,” Board Chairman J. Mark McWatters said. “Through a thoughtful, collaborative process, with significant input from credit union stakeholders and careful analysis by agency staff, we made changes that provide a measure of regulatory relief while maintaining the safety and soundness of the Share Insurance Fund.”

“This final rule will provide regulatory relief to non-complex credit unions, relief that similarly sized banks do not receive,” Board Member Rick Metsger said. “It will protect the vast majority of well-run and well-capitalized credit unions and reduce the chances of them paying losses when a small number of credit unions gamble with other people’s money.”

The supplemental final rule moves the effective date of the risk-based capital rule approved in October 2015 to Jan. 1, 2020. The amendments in this final rule also become effective at the same time. During the one-year delay, the NCUA’s current prompt corrective action requirements remain in effect.

The rule raises the current $100 million asset threshold for defining a complex credit union to $500 million. As a result, an additional 1,026 federally insured credit unions—based on Dec. 31, 2017, Call Report data—will be exempt from the rule. Only 531 complex credit unions will be subject to the rule when it goes into effect, and more than 98 percent of all complex credit unions will be considered well-capitalized.

A slide presentation summarizing the final rule is available online.

Proposed Bylaw Changes Issued for Comment

Credit unions will have an opportunity to comment on a proposed rule that would clarify, update, and simplify federal credit union bylaws.

The proposed rule clarifies bylaw provisions and provides detailed guidance to help credit union officials, employees, and members better understand provisions, particularly a credit union’s ability to limit services to a disruptive or abusive member.

The proposed rule retains the Federal Credit Union Act requirement that credit unions must use bylaws adopted by the agency. This is necessary to maintain consistency and protect fundamental member rights.

Comment on the proposed rule must be received within 60 days of publication in the Federal Register.

The NCUA tweets all open Board meetings live. Follow @TheNCUA on Twitter, and access Board Action Memorandums and NCUA rule changes at The NCUA also live streams, archives and posts videos of open Board meetings online.

Board Member J. Mark McWatters
Last modified on