NCUA Releases Letter to Credit Unions Regarding Corporate Assessment
August 20, 2013
Aug. 20, 2013
The National Credit Union Administration (NCUA) released a letter to Credit Unions 13-CU-06 which discusses the 2013 Corporate Stabilization Fund Assessment.
At the open meeting on July 25, 2013, the NCUA Board declared an assessment for the Temporary Corporate Credit Union Stabilization Fund of 0.08 percent (8 basis points) of credit union’s insured shares as of June 30, 2013.
This assessment is at the low end of the estimated range of 8-11 basis points announced at the NCUA Board’s open meeting in November 2012. It represents a significant improvement from last year’s assessment of 9.5 basis points, and it is the lowest assessment charged in the past three years.
Each credit union will receive an invoice in September for the 2013 assessment, which will be due by October 16, 2013.
The NCUA letter also provides answers to key questions about this assessment. The topics covered include:
- Why must all credit unions pay assessments?
- Why is the assessment set at 8 basis points?
- How should my credit union account for the assessment?
- What is the impact of the 2013 assessment on credit unions’ earnings and net worth?
- Will examiners take the assessment into account when evaluating credit union earnings and net worth?
- What are the net remaining projected costs of the corporate resolution program?
- What if a credit union has more questions?
Questions? Contact the Compliance Hotline: 1.800.546.4465, email@example.com.
Posted in Compliance.