Capital planning.

CFR · 2024-01-01 · US · Title 12

(a) (2) A covered credit union's board of directors (or a designated committee of the board) must at least annually, and for tier III credit unions, prior to the submission of the capital plan under paragraph (a)(1) of this section: (i) Review the credit union's process for assessing capital adequacy; (ii) Ensure that any deficiencies in the credit union's process for assessing capital adequacy are appropriately remedied; and (iii) Approve the credit union's capital plan. (b) (1) A quarterly assessment of the expected sources and levels of stress test capital over the planning horizon that reflects the covered credit union's financial state, size, complexity, risk profile, scope of operations, and existing level of capital, assuming both expected and unfavorable conditions, including: (i) Estimates of projected revenues, losses, reserves, and pro forma capital levels, over each quarter of the planning horizon under expected and unfavorable conditions; and (ii) A detailed description of the credit union's process for assessing capital adequacy; (2) A discussion of how the credit union will, under expected and unfavorable conditions, maintain stress test capital commensurate with all of its risks, including reputational, strategic, legal, and compliance risks; (3) A discussion of how the credit union will, under expected and unfavorable conditions, maintain ready access to funding, meet its obligations to all creditors and other counterparties, and continue to serve as an inter

official document · source cfr-2024 · id 12:§ 702.304