THE INSTITUTION'S SCORE
Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial stability, capital is crucial. From a safety and soundness perspective, the more capital, the better.
On our test to measure capital adequacy, S. W. E. received a score of 6 out of a possible 30 points, below the national average of 15.65.
S. W. E.'s capitalization ratio of 6.00 percent in our test was lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.