THE INSTITUTION'S SCORE
Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial fortitude, capital is important. From a safety and soundness perspective, the more capital, the better.
540 I.B.E.W. exceeded the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 20 out of a possible 30 points.
540 I.B.E.W. had a capitalization ratio of 20.00 percent in our test, above the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.