Accurate financial data is critical to bank shareholders and credit union members. Who is responsible to...

Accurate financial data is critical to bank shareholders and credit union members. Who is responsible to determine a bank and credit union's financial condition and whether they are well capitalized?

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Answer: The financial and economical health of both banks and credit union are important as they can be said as the building blocks of any nation's economy. The shareholders of banks and members of credit union has to rely on external regulation authorities for getting a better understanding of their bank or credit union. In case of banks, the responsibility to determine the financial condition in terms of capitalization rests with the federal reserves. The banks have to represent the CAR or capital adequacy ration to the federal reserve to show the adequacy of the capital that they posses and other financial ratios.

In case of Federal credit union, these are not regulated directly by Federal Reserve but are regulated by National credit Union Administration in USA. In case of state credit union are regulated at state level. These credit unions have to give necessary information with regards to their financial condition and capitalization to their respective authorities in an effective manner.

jeff jeffy answered 8 months ago

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