RALEIGH, N.C. – The $29-billion State Employees' Credit Union said it has added another “independent, external validation” to the stress tests it has conducted to monitor its capital levels.
In a released statement, SECU said “Although credit unions were specifically omitted from the Dodd Frank legislation, (NCUA) has determined that large, federally insured credit unions must also undergo the stress testing process,” and although it has been a long-time advocate of such analysis, it has been using the Federal Reserve bank stress requirements already in place to benchmark and simulate potential SECU balance sheet changes.
“SECU’s internal simulations, using those Federal Reserve 2013 scenarios produced highly positive results,” it said. “SECU recently enlisted the assistance of the international consulting firm of KPMG to conduct a formal, independent assessment of the Credit Union’s stress test capital evaluations.
KPMG’s assessment found SECU’s stress test methodology to be sound and reasonable and which complies with Federal Reserve Board requirements.”
SECU said that under NCUA’s current net worth requirements, at Sept. 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.