WASHINGTON - Federally insured credit unions should expect a refund from the National Credit Union Share Insurance Fund later this year, the industry's top regulator said.
Chairman Norman E. D'Amours of the National Credit Union Administration told a trade group meeting on Sept. 21 that a refund of between $90 million to $100 million will be disbursed later this year.
He told members of the National Association of Federal Credit Union that he asked industry officials whether they wanted the windfall this year or later. Not surprisingly, they told him to give it this year.
The $3.4 billion fund is capitalized with 1% of insured credit unions' deposits. Institutions book their contributions as an asset.
The fund's equity ratio now stands at 1.32% and may hit 1.34% by the end of the year, said agency spokeswoman Cherie Umbel. The agency is required to return money to credit unions once the ratio breaks 1.3%.