Risk Weights at a Glance with Comparison to FDIC

Numerator

Equity	Risk Weights	FDIC Risk Weights	Comparable
Equity Undivided earnings	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Equity Regular reserves	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Equity Appropriations for non-conforming investments	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Equity Other reserves	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Equity Equity acquired in merger	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Equity Net income	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y

Additions	Risk Weights	FDIC Risk Weights	Comparable
Additions Allowance for credit losses	Risk Weights 100% (no cap)	FDIC Risk Weights 100% (capped)	Comparable N¹
Additions Subordinated debt in accordance with §702.407	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Additions Section 208 assistance included in net worth as defined in §702.2	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y

Deductions	Risk Weights	FDIC Risk Weights	Comparable
Deductions NCUSIF capitalization deposit	Risk Weights -100%	FDIC Risk Weights N/A	Comparable Y
Deductions Goodwill (less excluded goodwill)	Risk Weights -100%²	FDIC Risk Weights -100%	Comparable Y
Deductions Other intangible assets (less excluded other intangible assets)	Risk Weights -100%²	FDIC Risk Weights -100%	Comparable Y
Deductions Identified losses not reflected in the RBC numerator	Risk Weights -100%	FDIC Risk Weights -100%	Comparable Y
Deductions Mortgage servicing assets in excess of 25% of RBC numerator (carry value)	Risk Weights -100%	FDIC Risk Weights -100%	Comparable Y

Denominator

Cash or Deposits in Financial Institutions	Risk Weights	FDIC Risk Weights	Comparable
Cash or Deposits in Financial Institutions Cash, currency and coin, including vault, ATM, and teller cash	Risk Weights 0%	FDIC Risk Weights 0%	Comparable Y
Cash or Deposits in Financial Institutions Insured balances at FDIC-insured depositories or FICUs	Risk Weights 0%	FDIC Risk Weights 0%	Comparable Y
Cash or Deposits in Financial Institutions Uninsured balances at FDIC-insured depositories, FICUs, and balances at privately-insured CUs	Risk Weights 20%	FDIC Risk Weights 20%	Comparable Y
Cash or Deposits in Financial Institutions Balances due from uninsured institutions or deposits not risk-weighted 0% or 20%	Risk Weights 100%	FDIC Risk Weights 20% - 150%	Comparable N³

Investments

Securities	Risk Weights	FDIC Risk Weights	Comparable
Securities Direct unconditionally guaranteed obligations of U.S. (government, central bank, agency)	Risk Weights 0%⁴	FDIC Risk Weights 0%	Comparable Y
Securities Obligations of supranational entities and multilateral development banks	Risk Weights 0%	FDIC Risk Weights 0%	Comparable Y
Securities Conditionally guaranteed obligations of U.S. (government, central bank, agency)	Risk Weights 20%^5,6	FDIC Risk Weights 20%	Comparable Y
Securities Obligations of GSEs other than equity or preferred stock	Risk Weights 20%^5,6	FDIC Risk Weights 20%	Comparable Y
Securities Securities issued by PSEs that represent general obligation securities	Risk Weights 20%	FDIC Risk Weights 20%	Comparable Y
Securities Part 703-compliant securities holding only 0% or 20% risk weight investments	Risk Weights 20%	FDIC Risk Weights ⁷	Comparable Y
Securities Securities issued by PSEs in the U.S. that represent revenue obligation securities	Risk Weights 50%⁶	FDIC Risk Weights 50%	Comparable Y
Securities Other non-U.S. government agency or non-GSE guaranteed RMBS	Risk Weights 50%^5,6	FDIC Risk Weights ⁸	Comparable Y
Securities Industrial development bonds	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Securities Interest-only MBS strips	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Securities Part 703-compliant investment securities	Risk Weights 100%⁷	FDIC Risk Weights N/A	Comparable N/A
Securities Corporate debentures and commercial paper	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Securities GSE equity exposure or preferred stock	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Securities Non-subordinated tranche of any investment security	Risk Weights 100%⁸	FDIC Risk Weights N/A	Comparable Y
Securities Publicly-traded equity investments (non-CUSO)	Risk Weights 100% or 300%	FDIC Risk Weights 300%	Comparable Y
Securities Investment securities not compliant with Part 703	Risk Weights 300%⁷	FDIC Risk Weights ⁷	Comparable Y
Securities Subordinated tranche of any investment security	Risk Weights 1,250%⁸	FDIC Risk Weights ⁸	Comparable Y

Other Investments	Risk Weights	FDIC Risk Weights	Comparable
Other Investments Federal Reserve Bank stock and Central Liquidity Facility stock	Risk Weights 0%	FDIC Risk Weights 0%	Comparable Y
Other Investments Part 703-compliant funds holding only 0% or 20% risk weight investments (non-security)	Risk Weights 20%	FDIC Risk Weights ⁷	Comparable Y
Other Investments Federal Home Loan Bank stock	Risk Weights 20%	FDIC Risk Weights 20%	Comparable Y
Other Investments Part 703-compliant investment funds (non-security)	Risk Weights 100%⁷	FDIC Risk Weights N/A	Comparable N/A
Other Investments Corporate non-perpetual capital (membership capital)	Risk Weights 100%	FDIC Risk Weights N/A	Comparable N/A
Other Investments Charitable donation accounts	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Other Investments Corporate perpetual capital (paid-in capital)	Risk Weights 100%⁹ or 150%	FDIC Risk Weights N/A	Comparable N/A
Other Investments Equity investments in CUSOs	Risk Weights 150%	FDIC Risk Weights N/A	Comparable N/A
Other Investments Investment funds not compliant with Part 703 (non-security)	Risk Weights 300%⁷	FDIC Risk Weights ⁷	Comparable Y
Other Investments Non-publicly traded equity investment (non-CUSO)	Risk Weights 100% or 400%	FDIC Risk Weights 400%	Comparable Y
Other Investments Subordinated tranche of any investment fund (non-security)	Risk Weights 1,250%⁸	FDIC Risk Weights ⁸	Comparable Y
Other Investments Non-security beneficial interests (includes CEIO equity tranche of securitization)	Risk Weights 1,250%	FDIC Risk Weights ¹⁰	Comparable Y¹¹

Loans

First Liens	Risk Weights	FDIC Risk Weights	Comparable
First Liens Current 1st-lien residential real estate loans < 35% of assets	Risk Weights 50%¹²	FDIC Risk Weights 50%	Comparable Y
First Liens Current 1st-lien residential real estate loans > 35% of assets	Risk Weights 75%¹²	FDIC Risk Weights 50%	Comparable N¹³
First Liens Non-current 1st-lien residential real estate	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y

Junior Liens	Risk Weights	FDIC Risk Weights	Comparable
Junior Liens Current junior real estate loans < 20% of assets	Risk Weights 100%¹²	FDIC Risk Weights 100%	Comparable Y
Junior Liens Current junior real estate loans > 20% of assets	Risk Weights 150%¹²	FDIC Risk Weights 100%	Comparable N¹³
Junior Liens Non-current junior real estate loans	Risk Weights 150%	FDIC Risk Weights N/A	Comparable N¹³

Consumer Loans	Risk Weights	FDIC Risk Weights	Comparable
Consumer Loans Share-secured loans (deposits held in-house)	Risk Weights 0%	FDIC Risk Weights 0%	Comparable Y
Consumer Loans Share-secured loans (deposits held in another financial institution)	Risk Weights 20%	FDIC Risk Weights 20%	Comparable Y
Consumer Loans Government-guaranteed portion of loan balances	Risk Weights 20%	FDIC Risk Weights 20%	Comparable Y
Consumer Loans Current secured, non-guaranteed consumer loans	Risk Weights 75%	FDIC Risk Weights 100%	Comparable N¹⁴
Consumer Loans Current unsecured, non-guaranteed consumer loans	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Consumer Loans Non-current consumer loans	Risk Weights 150%	FDIC Risk Weights 150%	Comparable Y

Commercial Loans	Risk Weights	FDIC Risk Weights	Comparable
Commercial Loans Paycheck Protection Program loans	Risk Weights 0%	FDIC Risk Weights 0%	Comparable Y
Commercial Loans Commercial loan balances secured by compensating balances	Risk Weights 20%	FDIC Risk Weights N/A	Comparable N/A
Commercial Loans Current commercial loans < 50% of assets	Risk Weights 100%¹⁵	FDIC Risk Weights 100% - 150%¹⁶	Comparable Y
Commercial Loans Current commercial loans > 50% of assets	Risk Weights 150%¹⁵	FDIC Risk Weights 100% - 150%¹⁶	Comparable N¹³
Commercial Loans Non-current commercial loans	Risk Weights 150%	FDIC Risk Weights 150%	Comparable Y

Other Assets

Denominator Deductions	Risk Weights	FDIC Risk Weights	Comparable
Denominator Deductions NCUSIF capitalization deposit	Risk Weights 0%¹⁷	FDIC Risk Weights N/A	Comparable N/A
Denominator Deductions Goodwill	Risk Weights 0%¹⁷	FDIC Risk Weights 0%	Comparable Y
Denominator Deductions Other intangible assets (excludes mortgage servicing assets)	Risk Weights 0%¹⁷	FDIC Risk Weights 0%	Comparable Y
Denominator Deductions Mortgage servicing assets in excess of 25% of RBC numerator (carry value)	Risk Weights 0%¹⁷	FDIC Risk Weights 0%	Comparable Y

Other Assets	Risk Weights	FDIC Risk Weights	Comparable
Other Assets Loans to CUSOs (unconsolidated only)	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Other Assets General account permanent insurance	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Other Assets All other assets listed on the statement of financial condition without a specified risk	Risk Weights 100%	FDIC Risk Weights 100%	Comparable Y
Other Assets Equity investments in CUSOs (unconsolidated only)	Risk Weights 100%¹⁸ or 150%	FDIC Risk Weights 100% - 600%	Comparable N¹⁹
Other Assets Mortgage servicing assets up to 25% of RBC numerator (carry value)	Risk Weights 250%	FDIC Risk Weights 250%	Comparable Y
Other Assets Separate account insurance	Risk Weights 300%²⁰	FDIC Risk Weights ²⁰	Comparable Y
Other Assets Subordinated tranche of any investment classified as other assets	Risk Weights 1,250%²¹	FDIC Risk Weights ²¹	Comparable Y

Off-Balance Sheet Exposures

Loans Transferred	Credit Conversion Factors / Risk Weights	FDIC Credit Conversion Factors / Risk Weights	Comparable
Loans Transferred 1st-lien residential real estate loans transferred with recourse	Credit Conversion Factors / Risk Weights 100% / 50%	FDIC Credit Conversion Factors / Risk Weights 100% / 50%	Comparable Y
Loans Transferred Junior-lien real estate, commercial loans, and all other unsecured loans transferred with recourse	Credit Conversion Factors / Risk Weights 100% / 100%	FDIC Credit Conversion Factors / Risk Weights 100% / 100%	Comparable Y
Loans Transferred All other secured consumer loans transferred with recourse	Credit Conversion Factors / Risk Weights 100% / 75%	FDIC Credit Conversion Factors / Risk Weights 100% / 100%	Comparable N²²
Loans Transferred Loans transferred to FHLB under the Mortgage Partnership Finance Program	Credit Conversion Factors / Risk Weights 20% / 50%	FDIC Credit Conversion Factors / Risk Weights N/A	Comparable N/A

Commitments	Credit Conversion Factors / Risk Weights	FDIC Credit Conversion Factors / Risk Weights	Comparable
Commitments Conditionally cancelable unfunded commercial loan commitments	Credit Conversion Factors / Risk Weights 50% / 100%	FDIC Credit Conversion Factors / Risk Weights 20%-50% / 100%²³	Comparable Y
Commitments Conditionally cancelable unfunded 1st-lien residential real estate loan commitments	Credit Conversion Factors / Risk Weights 10% / 50%	FDIC Credit Conversion Factors / Risk Weights 0%-50% / 50%²³	Comparable Y
Commitments Conditionally cancelable unfunded junior-lien real estate loan commitments	Credit Conversion Factors / Risk Weights 10% / 100%	FDIC Credit Conversion Factors / Risk Weights 0%-50% / 100%²³	Comparable Y
Commitments Conditionally cancelable unfunded secured consumer loans	Credit Conversion Factors / Risk Weights 10% / 75%	FDIC Credit Conversion Factors / Risk Weights 0% / 100%²³	Comparable Y
Commitments Conditionally cancelable unfunded unsecured consumer loans	Credit Conversion Factors / Risk Weights 10% / 100%	FDIC Credit Conversion Factors / Risk Weights 0% / 100%²³	Comparable Y

Other Off-Balance Sheet Exposures	Credit Conversion Factors / Risk Weights	FDIC Credit Conversion Factors / Risk Weights	Comparable
Other Off-Balance Sheet Exposures Financial standby letters of credit	Credit Conversion Factors / Risk Weights 100% / 100%	FDIC Credit Conversion Factors / Risk Weights 100% / 100%	Comparable Y
Other Off-Balance Sheet Exposures Forward agreements that are not derivative contracts	Credit Conversion Factors / Risk Weights 100% / 100%	FDIC Credit Conversion Factors / Risk Weights 100% / 100%	Comparable Y
Other Off-Balance Sheet Exposures Sold credit protection through guarantees	Credit Conversion Factors / Risk Weights 100% / 100%	FDIC Credit Conversion Factors / Risk Weights 100% / 100%	Comparable Y
Other Off-Balance Sheet Exposures Sold credit protection through credit derivatives	Credit Conversion Factors / Risk Weights 100%²⁴	FDIC Credit Conversion Factors / Risk Weights 100%²⁴	Comparable Y
Other Off-Balance Sheet Exposures Off-balance sheet securitization exposures	Credit Conversion Factors / Risk Weights 100% / 100% or Gross-up or 1,250%	FDIC Credit Conversion Factors / Risk Weights 100% / 1,250% or SSFA or Gross-up	Comparable Y
Other Off-Balance Sheet Exposures Off-balance sheet securities borrowing/lending and repurchase transactions	Credit Conversion Factors / Risk Weights 100% / 100%²⁴	FDIC Credit Conversion Factors / Risk Weights 100% / 100%²⁴	Comparable Y
Other Off-Balance Sheet Exposures Other off-balance sheet exposures not listed (meeting definition of commitments)	Credit Conversion Factors / Risk Weights 100% / 100%	FDIC Credit Conversion Factors / Risk Weights N/A	Comparable N/A
Other Off-Balance Sheet Exposures Over-the-counter or centrally-cleared derivatives	Credit Conversion Factors / Risk Weights ²⁵	FDIC Credit Conversion Factors / Risk Weights ²⁵	Comparable Y

This is an external link to a website belonging to another federal agency, private organization, or commercial entity. FDIC Risk Weights (Opens new window)

¹ FDIC caps allowance for credit losses at 1.25% of risk-weighted assets.

² Special handling for allowing goodwill and other intangibles related to supervisory mergers incurred prior to 2015.

³ FDIC uses country risk classifications and NCUA uses a simplified approach of 100% for all deposits in non-FDIC insured banks.

⁴ Exclude detached security coupons and ex-coupon securities.

⁵ Exclude interest only.

⁶ Non-subordinated.

⁷ FDIC is subject to look-through approach; NCUA has option of using the look-through approach.

⁸ FDIC is subject to gross-up or simplified supervisory formula approach (SSFA); NCUA has option of using gross-up approach.

⁹ Subject to the non-significant equity exposure measure.

¹⁰ Simplified approach used due to limited securitization activity by credit unions.

¹¹ FDIC subtracts CEIO exposure in the numerator; NCUA addresses CEIO exposure in the denominator. The effect to the RBC ratio is comparable.

¹² Includes 1- to 4-family, non-owner occupied real estate loans.

¹³ NCUA takes a more conservative approach for loans that have historically caused greater losses to the NCUSIF.

¹⁴ Secured consumer loans have lower credit risk than unsecured consumer loans and therefore a lower risk weight.

¹⁵ Excludes 1- to 4-family, non-owner occupied 1st- or junior-lien real estate loans and any loans secured by a personal use vehicle.

¹⁶ FDIC identifies certain loans as High Volatility Commercial Real Estate and assigns a 150% risk weight.

¹⁷ Deducted from the RBC numerator.

¹⁸ Subject to the non-significant equity exposure measure.

¹⁹ Specific to credit unions.

²⁰ FDIC is subject to look-through approach; NCUA has option of using the look-through approach.

²¹ FDIC is subject to gross-up or simplified supervisory formula approach (SSFA); NCUA has option of using gross-up approach.

²² Secured consumer loans have lower credit risk than unsecured consumer loans and therefore a lower risk weight.

²³ CCF is 20% if loan commitment is conditionally cancelable within 1 year and 50% if conditionally cancelable beyond 1 year.

²⁴ Alternatively, as defined by 12 CFR 324.

²⁵ Risk weight determined by factors such as product type, maturity, and collateral type.