ALEXANDRIA, Va. – NCUA Chairman JoAnn Johnson said despite ongoing problems at certain institutions, the credit union industry is healthy and federally insured deposits are safe with the National CU Share Insurance Fund.
“While there are isolated instances of credit unions encountering difficulties, on the whole the credit union industry is healthy,” the NCUA Chairman said.
Johnson’s statement came in response to growing concerns over the bank insurance fund, which will expend at least $8 billion to resolve the failure of IndyMac Bancorp, causing the fund to charge a premium to banks and thrifts to replenish those funds.
The credit union regulator said NCUSIF enters the second half of 2008 secure and well-capitalized with a reserve ratio of 1.24 (dollars per insured deposits), projected to reach 1.28 by year end.
