Section 702.101 - Capital measures, capital adequacy, effective date of classification, and notice to NCUA(a)Capital measures. For purposes of this part, a credit union must determine its capital classification at the end of each calendar quarter using the following measures: (1) The net worth ratio; and(2) If determined to be applicable under § 702.103 , either the risk-based capital ratio under § 702.104(a) through (c) or the CCULR framework under § 702.104(d) .(b)Capital adequacy.(1) Notwithstanding the minimum requirements in this part, a credit union defined as complex must maintain capital commensurate with the level and nature of all risks to which the institution is exposed.(2) A credit union defined as complex must have a process for assessing its overall capital adequacy in relation to its risk profile and a comprehensive written strategy for maintaining an appropriate level of capital.(c)Effective date of capital classification. For purposes of this part, the effective date of a federally insured credit union's capital classification shall be the most recent to occur of:(1)Quarter-end effective date. The last day of the calendar month following the end of the calendar quarter;(2)Corrected capital classification. The date the credit union received subsequent written notice from NCUA or, if state-chartered, from the appropriate state official, of a decline in capital classification due to correction of an error or misstatement in the credit union's most recent Call Report; or(3)Reclassification to lower category. The date the credit union received written notice from NCUA or, if state-chartered, the appropriate state official, of reclassification on safety and soundness grounds as provided under § 702.102(b) or § 702. 202(d).(d)Notice to NCUA by filing Call Report.(1) Other than by filing a Call Report, a federally insured credit union need not notify the NCUA Board of a change in its capital measures that places the credit union in a lower capital category;(2) Failure to timely file a Call Report as required under this section in no way alters the effective date of a change in capital classification under paragraph (b) of this section, or the affected credit union's corresponding legal obligations under this part. 80 FR 66706 , Oct. 29, 2015, as amended at 86 FR 72804 , Dec. 23, 2021 84 FR 68781 , 1/1/2022; 86 FR 72804 , 1/1/2022