RALEIGH, N.C., Oct. 14, 2014 (GLOBE NEWSWIRE) -- With revised credit union capital plans and pending stress tests for larger credit unions slated for February 2015, SECU has developed, and pro-actively adopted a new Capital Plan commensurate with recently published NCUA guidelines. State Employees' Credit Union's (SECU) Capital Plan is designed to meet the National Credit Union Administration's (NCUA) guidelines, and provide a sound base for future capital planning and governance at the Credit Union.
SECU contracted with Promontory Financial Group headquartered in Washington, D.C., to assist in the development of the new Capital Plan. Promontory Financial Group is a leading strategy, risk management and regulatory compliance consulting firm, led by Eugene A. Ludwig, former Comptroller of the Currency. Promontory has provided extensive guidance and capital plan support to a wide range of banks with varying asset sizes. During the last eighteen months, Promontory has provided capital planning and stress testing support to more than fifteen CCAR and DFAST firms. These firms are broadly regulated by the Federal Reserve, OCC and FDIC.
While no two capital plans are identical, SECU worked with Promontory to ensure that no gaps were identified in the Credit Union's Capital Plan, according to NCUA's guidance. Mandatory elements included in the not-for-profit cooperative's Plan, are the following:
1. A Strategic Discussion of the Credit Union's Business, including a business overview, summary of recent financial performance, relevant aspects of business strategy, and a description of risk profile and risk management overview.
2. Capital Planning Process, highlighting capital policy and capital planning practices, governance, internal control framework, and short-term and long-term plans for improvement.
3. Capital Planning Forecast and Consolidated Results, especially overview of economic scenarios, detailed financial results under baseline and stress conditions, and key assumptions and sensitivities.
Mike Lord, Chief Financial Officer for State Employees' Credit Union, comments, "Having an adequate capital plan which meets our insurance examiner's requirements is paramount as our Credit Union prepares for impending Stress Tests in the coming year. We are pleased that Promontory, a leader in the capital planning field, worked with us on this project, and look forward to NCUA's concurrence of the Plan's adequacy."
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.