Where a credit union does not have adequate reserves to meet the Regulatory Reserve Ratio by 30 September 2009, the board of directors of the credit union must provide the Registrar with a plan for achieving compliance. Such credit unions must achieve the Regulatory Reserve Ratio within the shortest timeframe possible, but not later than the timeframes nd percentages set out below:
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30 September 2009 - Regulatory reserve Ration of at least 7.5%;
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30 September 2010 - Regulatory reserve Ration of at least 8%;
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30 September 2011 - Regulatory reserve Ration of at least 8.5%;
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30 September 2012 - Regulatory reserve Ration of at least 9%;
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30 September 2013 - Regulatory reserve Ration of at least 10%.
Credit unions that are unable to meet the Regulatory Reserve Ratio in accordance with the timeframe outlined above may be subject to certain restrictions in their business to take account of their low reserve base.
The RCU document setting out the requirements can be accessed via the following link.