No 2014 Share Insurance Fund Premium: NCUA

“With the Share Insurance Fund on a sound footing, NCUA will not charge federally insured credit unions a premium in 2014.”
— NCUA Board Chairman Debbie Matz

The NCUA announced Thursday that credit unions will not be asked to pay a premium to the Share Insurance Fund in 2014. The announcement came during the NCUA Board’s ninth scheduled open meeting for the year.

“With the Share Insurance Fund on a sound footing, NCUA will not charge federally insured credit unions a premium in 2014,” NCUA Board Chairman Debbie Matz said.

The Share Insurance Fund made a net income of $24.6 million for the third quarter, a number that was bolstered by a decline in the number of troubled credit unions, which allowed the NCUA to reduce provisions for insurance losses by $18.7 million.

“The number of troubled credit unions continues to decline,” said Matz, “and insurance losses remain manageable. Prudent regulation and supervision of a credit union system that continues to be strong and stable have kept the Share Insurance Fund at the maximum equity ratio permitted by law.”

Two Rules Approved

The NCUA also approved proposed technical amendments to its corporate rule, called “housekeeping amendments” in the press release, and joint agency flood insurance rule changes.

“To prevent a recurrence of the corporate crisis, the NCUA Board finalized substantive changes to the corporate rule four years ago,” Matz said of the corporate rule. “The technical amendments we’re making today would clarify these rules and provide corporate credit unions a measure of regulatory relief.”

The changes to the flood insurance rule bring regulations in line with the Homeowner Flood Insurance Affordability Act of 2014, and include a new exemption no longer requiring separate flood insurance for certain detached structures.

The Office of the Comptroller of the Currency, the Federal Reserve Board of Governors, the Federal Deposit Insurance Corporation and the Farm Credit Administration have also approved the proposed rule.

View the press release and learn about open comment periods on the NCUA’s website.

Questions about this story? Contact James Pearson: 206.340.4790, jpearson@nwcua.org.

Posted in NCUA.