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federal_register: 00-18278

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00-18278 Prompt Corrective Action; Risk-Based Net Worth Requirement Rule In 1998, the Federal Credit Union Act was amended to require NCUA to adopt a system of prompt corrective action for federally- insured credit unions. As a separate component of that system, NCUA is required to define credit unions that are "complex" by reason of their portfolio of assets and liabilities and to develop a risk-based net worth requirement to apply to such credit unions in the "well capitalized" or "adequately capitalized" statutory net worth categories. The NCUA Board issued a proposed rule consisting of a three-step process for defining a "complex" credit union and for determining its risk-based net worth requirement under either of two methods. As revised to reflect public comments and to incorporate other improvements, the final rule narrows the definition of "complex" by minimum asset size and minimum risk-based net worth requirement; modifies the composition of certain risk portfolios; adjusts certain corresponding thresholds and risk weightings; and adds a risk mitigation credit. 2000-07-20 2000 7 https://www.federalregister.gov/documents/2000/07/20/00-18278/prompt-corrective-action-risk-based-net-worth-requirement https://www.govinfo.gov/content/pkg/FR-2000-07-20/pdf/00-18278.pdf National Credit Union Administration 335 In 1998, the Federal Credit Union Act was amended to require NCUA to adopt a system of prompt corrective action for federally- insured credit unions. As a separate component of that system, NCUA is required to define credit unions that are "complex" by...

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