National Credit Union Share Insurance Fund (NCUSIF)

Our Position

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.

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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.

What NAFCU is doing

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