Doug Alldredge, CPA and chief financial officer of First Credit Union in ($402.5M, Chandler, AZ) has compared the capital requirements for two $100 million institutions — a bank and a credit union — with the same asset composition. In the table below, Alldredge has created a balance sheet with assets composed of 29% investments, 35% … Continue Reading
The below comparison of existing risk-based capital requirements for banks with the proposed RBC levels for credit unions by Douglas Alldredge, CPA and chief financial officer of First Credit Union ($402.5M, Chandler, AZ), shows credit unions would have to reserve twice the level of capital, 199%, for common asset classes where risk weights are different … Continue Reading
Following the Great Recession and financial crisis, there have been many commentaries and studies about why the risk-based capital requirements did not prevent severe losses. The following are conclusions from several of these. Bloomberg Businessweek “Bloomberg Businessweek” posed the following question to Mark Carney, the head of Canada’s central bank during the crisis and current governor … Continue Reading