What minimum net worth must a credit union maintain according to NCUA?

The minimum net worth that a credit union must maintain, according to NCUA (National Credit Union Administration), is determined by its well capitalized status as defined under the Federal Credit Union Act. This regulatory framework establishes specific capital adequacy standards to ensure that credit unions operate safely and soundly, providing protection to members and their deposits.

A credit union must achieve a certain net worth ratio; being classified as "well capitalized" means it has sufficient reserves to absorb losses and continue operations, thus ensuring financial stability within the institution. This classification is particularly important because it helps in risk management and impacts the overall health of the credit union.

While other options reference varyingly relevant concepts, none define the established requirement as clearly or specifically as the guideline outlined by the Federal Credit Union Act regarding capital adequacy and net worth. Understanding this distinction is crucial for the appropriate management of credit union financials.