NAFCU welcomes discourse on Stabilization Fund closure, concerned about proposed 1.39% NCUSIF target
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 discourse is crucial to developing a solution that is in the best interests of all credit unions," Berger said in response to today's action. "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 all aspects of the proposal. For our part, NAFCU recommends the agency's decision take 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 legal authority to return assets to 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 to the NCUA Sept. 5.
The NCUA Board is also seeking comments on a proposal addressing NCUSIF equity distributions and another on emergency mergers. (Access today's proposals, reports.)
In a mid-session budget review update, staff reported on a 2 percent reduction in the 2017 budget to $292.1 million.
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