National Credit Union Share Insurance Fund (NCUSIF)
We believe that the NCUA should work diligently to maintain an equity ratio above the statutory minimum of 1.2 percent through prudent management of the NCUSIF, not an unnecessary and costly premium charge for credit unions. Even in a challenging economic environment, there exists a window between the normal operating level (NOL) (1.3%) and the statutory minimum (1.2%) that allows the NCUSIF to operate through business cycles without requiring NCUA to charge a premium to credit unions, except under severe distress. NAFCU opposes the raised NOL – now set at 1.38% -- and will continue to urge the NCUA to provide additional refunds to credit unions and return the NOL to its customary level of 1.30% as soon as possible.
How This Impacts You
Due to NCUA's projected decline in the National Credit Union Share Insurance Fund (NCUSIF) equity ratio, agency staff has recommended a premium charge to credit unions in 2017 of three to six basis points. The premium charge would be in an effort to return the equity ratio to the normal operating level of 1.3 percent from its 2017 projections of 1.24 to 1.27 percent.
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