NCUA decreases NOL from 1.39% to 1.38%; NAFCU urges more
During its open meeting Thursday, the NCUA Board approved of decreasing the National Credit Union Share Insurance Fund's (NCUSIF) normal operating level (NOL) from 1.39 to 1.38 percent effective immediately. NAFCU continues to fight for a lowering of the NOL back to 1.3 percent so credit unions can realize the fullest distribution possible.
"This decrease is a positive development and we thank the NCUA for taking this step," said NAFCU Chief Economist and Vice President of Research Curt Long. "We will continue to press the NCUA to reduce the NOL for further distributions."
If the equity ratio as of Dec. 31 is above the normal operating level, which will be known in February, and the other statutory criteria are met, there will be a distribution sufficient to bring the equity ratio down to the normal operating level, the NCUA said. This distribution would occur no later than the end of the second quarter of 2019. The agency said it is committed to reviewing the NOL every year.
The NCUA voted September 2017 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. As a result of this merger, credit unions received $735.7 million in distributions from the NCUSIF in July. NAFCU supported this distribution but wants the industry to receive as much money back as possible.
See NAFCU Today for more on today's board meeting.
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