September was another strong month for credit unions according to CUNA senior economist Perc Pineda.
Credit unions with assets of more than $50 million would be subject to revised risk-based capital requirements under a proposal announced Thursday by the National Credit Union Administration that would require a risk-based capital ratio of 10.5 percent to be classified as “well capitalized.”
Changes in NCUSIF definitions of equity ratio and credit union net worth were unanimously approved by the NCUA board on Sept. 22.
The term payout ratio was originally applied in the stock market as a measure of return to investors (dividend payout ratio). Credit unions can benefit from from this concept by using these ratios to measure the percent of interest income that is paid to members in the form of interest on deposits.