Newsroom

July 18, 2018

CUs to receive NCUSIF distributions next week

moneyCredit unions will receive $735.7 million in distributions from the National Credit Union Share Insurance Fund (NCUSIF) next week, the NCUA announced Tuesday. NAFCU continues to fight for credit unions to realize the fullest distribution possible.

This distribution is the result of the NCUA Board vote last September to merge the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) with the NCUSIF. At the same time, NCUA also elected to raise the NOL of the NCUSIF to 1.39 percent. NAFCU was the only trade association fighting to keep the NOL at 1.3 percent so credit unions could realize the fullest distribution possible; the association continues to urge the NCUA to return the NOL to that level as soon as possible.

"Credit unions receiving distributions from the NCUSIF is incredibly positive, but our work is not done," said NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt. "As credit unions' Washington Watchdog, NAFCU listened to its members and called for the NCUA to return all corporate stabilization monies back to credit unions. We will continue to press the NCUA to reduce the NOL for further distributions.  While it is unfortunate that the merging of the funds cut off the likelihood of full rebates to credit unions, we support all avenues for credit unions to put much needed capital into the economy today." 

 

The NCUSIF's equity ratio stood at 1.46 percent at the end of December, above the NOL of 1.39 percent. In February, the NCUA announced its distribution to credit unions this year to be $735.7 million; a significant portion of the funds recovered from the corporate resolution process was retained in the NCUSIF to reach the new NOL.

NAFCU's widely used SIF distribution calculator to determine the amount of the distribution credit unions will receive is available for members to download here.