Newsroom

FOR IMMEDIATE RELEASE

Washington (July 20, 2017) – National Association of Federally-Insured Credit Unions (NAFCU) President and CEO Dan Berger welcomed the NCUA Board's decision today to reach out to the credit union industry for input on the closure of the Temporary Corporate Credit Union Stabilization Fund. But he noted concerns about the second part of that - the proposed increase to 1.39 percent in the "normal operating level" of the National Credit Union Share Insurance Fund.

"There are many factors involved in a potential merger of the stabilization fund into the National Credit Union Share Insurance Fund, and public comments are crucial to developing a solution that is in the best interests of all credit unions," said Berger. "However, the proposed substantial increase in the normal operating level is unacceptable, and NAFCU will strongly urge the agency to avoid such a dramatic move."

Berger continued, "NAFCU will be giving the NCUA our members' feedback on the proposal. For our part, NAFCU recommends the agency's decisiontake into account two facts: 1) under the Federal Credit Union Act, the NCUA is not required to assess a premium in 2017, and 2) we believe the NCUA has the authority to return assetsto credit unions directly.The money credit unions pay to the NCUA comes from its members, and it should be returned to the fullest extent possible."

Comments on the TCCUSF/NCUSIF proposal will be due Sept. 5.

The NCUA Board today is also seeking comments on a proposal addressing NCUSIF equity distributions and another on emergency mergers.

In a mid-session budget review update, staff reported on a 2 percent reduction in the 2017 budget to $292.1 million.

The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation's federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go towww.nafcu.orgor@NAFCUon Twitter.

###