NCUA Board to Discuss Stabilization Fund Rebates
This Thursday, Feb. 15, credit unions will learn what to expect from the distribution.
According to the agenda for this Thursday’s National Credit Union Administration (NCUA) board meeting, the process of getting rebates to credit unions from the closure of the Temporary Corporate Credit Union Stabilization fund will be up for discussion. The NCUA closed the fund in October 2017, merging the stabilization fund into the National Credit Union Share Insurance Fund. The NCUA board anticipates credit unions will receive refunds beginning this year.
In collaboration with member credit unions, the Northwest Credit Union Association (NWCUA) advocated for the fund’s closure, and for distribution of overpaid assessments proportional to what was paid by individual credit unions.
Initially, the NCUA estimated the 2018 refund pool for credit unions would range from $600 million to $800 million, “absent any significant changes in the economy or the Share Insurance Fund’s performance.”
“Based on the current methodology for dividend distributions, we expect this distribution will fall on the lower end of the NCUA’s early projections, possibly below the $600 million mark,” said John Trull, NWCUA’s AVP, Regulatory Advocacy.
Stay tuned for updates on the outcomes of the Feb. 15 NCUA board meeting in next week’s Anthem. Questions about regulatory advocacy? Contact John Trull, NWCUA’s AVP, Regulatory Advocacy, at email@example.com.