C (Capital Adequacy)

(Filler article regarding the ACA for financial institution publications April 2014)

The Affordable Care Act (ACA) is arguably the most sweeping legislation to be passed in the last 60 years.  

From this point forward, almost every American will be affected in one way or another by the ACA.  

While controversy swirls as to the effects the ACA will have on the economy, health care users, health care providers, and health care issues in general, one thing is  certain:  the ACA is here to stay.  

Credit  union executives struggle to determine the proper amount that needs to be set aside in their Allowances for Loan and Lease Losses (ALLL).

The  Office of the Comptroller of the Currency has issued a series of Policy Statements intended to guide financial institutions in the calculation of the Reserve for Loan Losses consistent with GAAP.

The most recent Policy Statement, published in 2006, identifies Credit Unions and the NCUA as subject to its provisions.