NCUA: No Stabilization Fund Assessments in the Foreseeable Future
March 18, 2015
March 18, 2015
The National Credit Union Administration announced Tuesday that costs of the Corporate Resolution Program and the performance of the Guaranteed Notes Program continue to improve, and therefore there are no assessments foreseen in the near future.
“We can now see a future with no further assessments,” said NCUA Chairman Debbie Matz. The projected assessment range for the Stabilization Fund currently stretches from negative $2.5 billion to negative $700 million. If both ends for the range remain negative, it’s unlikely the NCUA will charge credit unions future assessments for the fund.
These projections are dependent on a number of factors, said Matz, including the performance of the failed corporates’ legacy assets, future legal recoveries, and economic variables like interest rates, unemployment and housing costs.
“Five years ago, assessment projections ranged as high as $9.2 billion, but careful management and an improving economy have helped brighten the picture considerably,” said Matz. “With six more years until the expiration of the Stabilization Fund, NCUA will continue to exercise prudence, and we will continue our efforts to hold accountable the Wall Street firms responsible for this crisis.”
Credit unions have paid $4.8 billion in assessments since the creation of the Stabilization Fund in 2009, and the fund is set to expire in 2021. For more information, download the NCUA’s Questions and Answers document.
Questions about this story? Contact James Pearson: 206.340.4790, firstname.lastname@example.org.