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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

CREDS 5.3 Version 1 credit unions

Requirement to maintain capital assets ratio

CREDS 5.3.1

[Note: a transitional provision applies to this rule: see CREDS TP 1.1.]

Capital requirement for certain version 1 credit unions

CREDS 5.3.10R
  1. (1)

    A version 1 credit union must not lend to a member more than £7,500 in excess of the attached shares held by that member, unless it has a capital-to-total assets ratio of at least 5%.

  2. (2)

    A credit union which is owed by a member a total amount greater than £7,500 in excess of the attached shares held by that member must maintain at all times, while such an amount is outstanding, a capital-to-total assets ratio of at least 5%.