RALEIGH, N.C., Oct. 20, 2014 (GLOBE NEWSWIRE) -- As credit unions await a new risk-based capital proposal from the NCUA, State Employees' Credit Union has just concluded a high level, independent, capital assessment. KPMG, LLP, a global accounting advisory firm, has recently completed the external capital review for State Employees' Credit Union. The KPMG review included analysis of SECU's capital measurement methodologies under BASEL I, BASEL III, FDIC and NCUA Risk-Based Net Worth (RBNW) requirements.
Historically, State Employees' Credit Union has periodically benchmarked its balance sheet safety and soundness against the FDIC and BASEL capital standards required of U.S. banks. Beginning in 2013, SECU also began benchmarking its balance sheet and risk assessment against the capital/stress testing scenarios required by the Federal Reserve, FDIC and OCC for large U.S. banks. Although never a fully comparable analysis, these benchmarkings provide confirmation that SECU's approach to capital planning, measurement and forecasting are in sync with the guidance of U.S. federal banking regulators.
KPMG's report noted that: "The methodologies applied by SECU to assign risk weights to each category of assets in accordance with each regulatory capital regime were reasonable." "Capital ratios as determined by SECU through the application of their methodologies exceeded the 2019 minimum capital ratios required of banks."
The $29 billion Credit Union's Chief Financial Officer Mike Lord states, "Comparisons of SECU's capital plan under all three of the bank risk-based capital planning requirements (Basel I, Basel III and FDIC) validate that our Credit Union is one of the best capitalized, large financial institutions in the Country! While SECU is not subject to the Basel or FDIC capital regimes, our Credit Union is proactive in ensuring its member-owners that SECU's risk-based capital plan exceeds the requirements set forth by any regulatory capital regime."
"Under NCUA's current net worth requirements at September 30, 2014, SECU is well-capitalized with a leverage ratio of 7.74% and has a 15.72% well-capitalized ratio under the newly proposed NCUA risk-based capital standards. If SECU were subject to bank BASEL I requirements, its well-capitalized ratio would be 19.46% and under current bank FDIC/BASEL III capital requirements SECU would enjoy a 12.84% well-capitalized ratio. We appreciate the assistance provided by KPMG in our 2014 Capital Calculation Assessment. We look forward with great interest to NCUA's adjusted, risk-based capital proposal for all credit unions."
About SECU
A not-for-profit financial cooperative owned by its members, SECU has been providing employees of the State of North Carolina and their families with consumer financial services for 77 years. With more than 1.9 million members, SECU provides services through 254 branch offices, 1,100 ATMs, 24/7 Contact Centers and a website, www.ncsecu.org.