THE INSTITUTION'S SCORE
Capital acts as a buffer against losses and affords protection for members during periods of financial trouble for the credit union. Therefore, when it comes to measuring an an institution's financial stability, capital is important. When looking at safety and soundness, the higher the capital, the better.
On our test to measure capital adequacy, LOCAL 520 U A achieved a score of 30 out of a possible 30 points, exceeding the national average of 15.65.
LOCAL 520 U A's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.