For the third straight year, the National Credit Union Administration will not require credit unions to pay deposit insurance premiums.
"Credit unions are safe and sound and they are benefiting from their good management," NCUA Chairman Norman E. D'Amours said Wednesday.
The National Credit Union Share Insurance Fund has $1.28 for every $100 of insured credit union deposits. Federal law requires NCUA to rebate money to credit unions if the fund goes over 1.30% Levying a premium of just eight cents per $100 of deposits would raise the fund to 1.39%, the agency estimated.
The fund insured deposits of $253.1 billion as of June 30.
Federally insured credit unions maintain deposits of 1% of insured deposits in the insurance fund. The NCUA board also is authorized to levy an annual insurance premium.
Since the fund was recapitalized in 1985, NCUA has only assessed a premium once -- in 1992 to cover $163 million in losses from the year before.
