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Diane Publishing Books
Credit Unions: Available Information Indicates No Compelling Need for Secondary Capital
Richard J. Hillman (au); Harry Medina (ed). Since the passage of the Credit Union Membership Access Act of 1998, many in the credit union (CU) industry have sought legislative changes to the net worth ratio central to prompt corrective action. The current debate centers on the issue of allowing federally insured CU to include additional forms of capital within the definition of net worth. In light of these issues, this report reviews: (1) the underlying concerns that have prompted the CU industryís interest in making changes to the current capital requirements; (2) the issues associated with the potential use of secondary capital in all federally insured CU; & (3) the issues associated with the potential use of risk-based capital in all federally insured CU. Charts & tables.
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