MSHI Webinar - Preparing for Risk-Based Capital (Full Webinar)

Mark H. Smith's Podcast

English - March 10, 2014 00:00 - 59 minutes - 81.4 MB
Business credit unions finance alm liquidity risk business Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed

Previous Episode: MHSI - ALM 101 (Full Webinar) (02-11-14)

Next Episode: Implementing the NCUA Liquidity Risk Regulations (02-06-14)

NCUA has proposed a major change in the capital requirements. A risk based capital requirement similar to other types of financial institutions is proposed for credit union over $50 million assets. In this webinar we will review the proposed requirements and their potential impact on credit unions.

In this chapter, Mark covers the following:

* Welcome to Preparing for Risk-Based Capital
* What is Proposed?
* NCUA proposes to implement a risk-based capital (RBC) criteria
* Why is NCUA proposing RBC?
* NCUA’s List of Major Risks Faced By Credit Unions
* Characteristics of The RBC Proposal
* Proposed Loan Categories
* Investment Categories
* Other Categories of Assets & Assets Risk-Weighted @ 0%
* Net Worth & RBC Requirements to be considered well-capitalized
* Examples of Risk Weights By Category
* Definition of Weighted Average Life of Investments (WALI)
* Definition of the Risk-Based Capital Numerator (Total Capital)
* Scenarios & Questions
* What to do Now
* Summary