NCUA Forecasts Little to No Increase in Premiums and Assessments for 2013

In a letter to federally insured credit unions, the National Credit Union Administration (NCUA) provided a range for the National Credit Union Share Insurance Fund (NCUSIF) premiums and Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) assessments. The forecast helps credit unions plan and budget for the upcoming year.

The share insurance fund estimate for 2013 of 0-5 basis points is the lowest-ranging estimate in years, although for the past two fiscal years the actual assessment has been zero following a 12.42 basis point assessment in 2010.

The estimated stabilization fund assessment of 8-11 basis points is the same as last year. The narrow range means that the actual assessment will likely be very close to last year’s assessment of 9.5 bps. The NCUA estimates that following 2013 there will be between 1.9 -4.8 Billion of debt remaining, mainly due to the corporate failures. Besides assessments, monies resulting from legal action and settlements with financial institutions that defrauded corporate credit unions will be used to pay down the stabilization fund.

According to John Trull director of regulatory advocacy for the Association the news is pretty much what credit unions were expecting and will likely be taken in stride.

“This reflects the improving strength of the credit union system,” Trull said. “While it doesn’t come as a surprise, this still represents good news for credit unions.”

For more information, read the NCUA’s letter to credit unions.

 

Questions? Contact Director of Regulatory Advocacy John Trull: 503.350.2209, jtrull@nwcua.org.

Posted in Advocacy News, NCUA.