The aggregate of the standard component equals the RBNW requirement a credit union must meet. Step three provides an opportunity to substitute up to three standard components, representing above average risk, with a corresponding alternative component if it reduces the RBNW requirement measure for the credit union. The final rule provides an option for credit unions that do not meet the RBNW requirement under the standard calculation or with alternative components. These credit unions may apply for risk mitigation credit to reduce their RBNW requirement. The rule is estimated to apply to 450 credit unions.
Votes are unanimous unless otherwise noted.