NCUA Approves Corporate Stabilization Fund Assessment
August 30, 2011
August 30, 2011
In a board meeting held yesterday, the National Credit Union Administration (NCUA) Board approved the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment at 25 basis points, or 0.25% of insured shares as of June 30, 2011. This assessment is estimated to total nearly $2 billion, which will help provide the near-term cash needed over the next year, with 2012 assessments estimated significantly lower at nine basis points. TCCUSF assessments are predicted to remain around second-year levels throughout the life of the obligation.
“The industry anxiously awaited the NCUA Board’s determination of this year’s corporate stabilization assessment and anticipated an assessment in that range,” Northwest Credit Union Assocation (NWCUA) President Troy Stang said. “We fully expect lower basis point assessments in years to come. Regardless, it will be good to have another year in the chapter of addressing the legacy problems behind us, so that credit unions can focus on serving the members in their communities in the Northwest.”
The NCUA has also determined that there will be no National Credit Union Share Insurance Fund premium for 2011, and that it is also unlikely that one will exist for 2012.
Credit unions should expect TCCUSF assessment invoices from NCUA shortly with a due date of Sept. 27. Assessments should be expensed in September and reported on Sept. 30 call reports.
In the same meeting, the NCUA Board also unanimously approved the formation of the NCUA Guaranteed Note Securities Management and Oversight Committee to manage the guaranteed notes that have been issued as part of the corporate stabilization program. The committee will be charged with ensuring that the NCUA “fulfills its ongoing responsibilities under the NGN program in a manner that promotes transparency, efficiency and accountability,” the agency said.
The board meeting had been conditionally postponed due to the threat of inclement weather related to Hurricane Irene, but it was ultimately held as originally scheduled.
Questions? Contact Director of Regulatory Advocacy Jaycee Winn: 503.350.2209, email@example.com.
Posted in NCUA.