November 14, 2022

NCUA Board to receive SIF update

NCUAThe NCUA Board meets Thursday and will receive a quarterly briefing on the Share Insurance Fund (SIF). NAFCU Chief Economist and Vice President of Research Curt Long, in response to the agency’s 2023-2024 proposed budget, has reiterated the need to preserve the strength of the SIF without overburdening credit unions with exorbitant operating fees.

In addition to ensuring the strength of the fund, NAFCU has consistently advocated that the agency return as much excess cash from the Operating Fund to credit unions and has opposed any premium assessments that are a result of share growth, rather than weakness in the SIF.

The NCUA Board received a briefing on the SIF for the second quarter during its September meeting, which showed SIF assets totaled $20.3 billion – a decline of $320.2 million from the first quarter of 2022 primarily due to an unrealized loss in Treasury investments. The six-month projection of the equity ratio was 1.30 percent for the period ending Dec. 31, 2022.

The meeting will be available via livestream on the agency’s website. NAFCU will monitor the meeting and keep credit unions informed of any updates.