National Credit Union Share Insurance Fund (NCUSIF)
We believe that the National Credit Union Administration (NCUA) should work diligently to maintain an equity ratio above the statutory minimum of 1.20 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 an adequate window between a 1.30 percent normal operating level (NOL) and the statutory minimum (1.20 percent) to allow the NCUSIF to operate through business cycles without requiring the NCUA to charge a premium to credit unions, except under severe distress. NAFCU opposes the raised NOL – now set at 1.38 percent – 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 percent as soon as possible.
How This Impacts You
The Temporary Corporate Credit Union Stabilization Fund (TCCUSF) closed on October 1, 2017, and all funds, property, and other assets and liabilities were distributed to the NCUSIF. Distributions from the NCUSIF followed in 2018 and 2019, but with a lower NOL those distributions would have been larger. NAFCU remains concerned with the increased NOL, which is now set at 1.38 percent, as opposed to its customary level of 1.30 percent. Not only is this the highest NOL in the fund's history, but it could result in excess money being retained by the agency that credit unions could use to better serve their members.
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December 09, 2022
Budget, SIF NOL, financial innovation on NCUA Board agenda
November 14, 2022
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In the News
Credit Union Times | March 07, 2019NCUA Board Approves $160.1 Million Equity Distribution
Credit Union Journal | March 07, 2019NCUA approves $160M payout but trades want more
Credit Union Times | March 07, 2019NCUA Board Approves $160.1 Million Equity Distribution View all
Letters & Comments
July 23, 2021Comment Letter to NCUA on Normal Operating Level Policy and Methodology
May 17, 2021Letter to House Financial Services on Oversight of Prudential Regulators Hearing
February 25, 2021Letter to Senate Banking and House Financial Services on NCUSIF View all