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, an institution's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.
On our test to measure capital adequacy, MERCED MUNICIPAL EMPLOYEES received a score of 12 out of a possible 30 points, failing to reach the national average of 15.65.
MERCED MUNICIPAL EMPLOYEES had a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.