Risk-Based Capital, 12 CFR 702.101(b)

Forms and Documents

Document	Type	Status	Availability
NPRM_RBC2_80FR4340_27JAN2015.pdf	Supplementary Document	Uploaded 2018-08-02	Available
FINAL_3133-0191_Supporting Statement_RBC2-Final_Rule_080218.docx	Supporting Statement A	Uploaded 2018-08-02	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
214734	Risk Based Capital Written Policy for Non-Complex Credit Unions	Other-Requirement	Removed
214732	Capital Adequacy - Complex Credit Unions		Modified

ICR Details

OMB Control No: 3133-0191	ICR Reference No: 201807-3133-001
Status: Active	Previous ICR Reference No: 201501-3133-002
Agency/Subagency: NCUA	Agency Tracking No: EI
Title: Risk-Based Capital, 12 CFR 702.101(b)
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 08/07/2018
	Date Received in OIRA: 08/02/2018
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	08/31/2021	36 Months From Approved
Responses	1,489	0	0
Time Burden (Hours)	59,560	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: Amendments to 12 CFR 702 (October 29, 2015; 80 FR 66626), regarding prompt corrective action (PCA), require that credit unions taking certain risks hold capital commensurate with those risks. This final rule restructures the NCUA’s PCA regulations and makes various revisions, including amending the agency’s current risk-based net worth requirement by replacing it with a new risk-based capital requirement for complex credit unions. The risk-based capital provisions of this final rule apply only to federally insured, natural-person credit unions (credit unions) with assets greater than $100 million. Section 216(d) of the Act (12 U.S.C. 1790d (d)) addresses the risk-based net worth requirement for complex credit unions. Accordingly, §702.103 defines “complex” and the risk-based capital requirement is applicable only if the credit union’s quarter-end total assets are greater than $100 million. Section 702.101(b) requires that a credit union defined as complex has a process for assessing its overall capital adequacy in relation to its risk profile and a comprehensive written strategy for maintaining an appropriate level of capital. The NCUA will use the information to ensure a credit union’s capital is sufficient given its risk profile.

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Authorizing Statute(s): US Code: 12 USC 1790d(d) Name of Law: Federal Credit Union Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3133-AD77	Final or interim final rulemaking	80 FR 66626	10/29/2015

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Capital Adequacy - Complex Credit Unions
Risk Based Capital Written Policy for Non-Complex Credit Unions

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	1,489	0	0	6,588	-5,099	0
Annual Time Burden (Hours)	59,560	0	0	161,540	-101,980	0
Annual Cost Burden (Dollars)	0	0	0	3,252,142	-3,252,142	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: There has been a slight increase to the number of respondents from what was reported at the time of the proposal. An increase of 34 credit unions is due to the increase of their assets size, which are now identified as complex. The proposal also included burden assigned to non-complex credit unions. This burden has been removed because this information collection requirement only applies to complex credit unions. No burden is imposed on non-complex credit unions. A reduction of 101,980 burden hours is attributed to this adjustment.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 08/02/2018

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