NCUA Eyes Next Year's Assessments
WASHINGTON-NCUA, fresh off an announced assessment to replenish reserves for the National CU Share Insurance Fund, will give CUs new estimates for next year's charges for both the insurance fund and the corporate credit union bailout in the next few weeks.
The estimates for next year are expected to be provided at the NCUA Board's November meeting, said Board Member Gigi Hyland. NCUA assessed federally insured credit unions a total of 15 basis points, or $1.1 billion, last year for the NCUSIF and corporate charges; and 26 BPs, or just over $2-billion, for this year's charges. The charges are expected to continue into the future.
Hyland acknowledged the burden that the premium and assessment place on credit unions, but underscored the necessity for the charges in order to maintain the safety of the insurance fund and the corporate system. She also noted that the total for the premium and assessment came in within the lower range anticipated by board last November, which was 25-40.
"The decision to charge the premium was not taken lightly," said Hyland. "However, in these turbulent economic times where we anticipate continued losses at credit unions, it is not practical to manage the fund without a reasonable margin of safety. The responsible public policy is to manage the fund cautiously. (On. Sept. 16), the NCUA board restored a reasonable margin of safety for the present, rather than risking a loss of confidence in the future."