While “there is most likely no need” for a National Credit Union Share Insurance Fund (NCUSIF) assessment in 2013, an assessment, if charged, will be between zero and five basis points (bp), the National Credit Union Administration (NCUA) said in a letter to credit unions (12-CU-13).

The letter also confirmed that the 2013 range of Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessments will be between eight and 11 bp. This assessment range, which is the same as for this year,  would generate between $705 million and $969 million in funds to cover corporate stabilization costs.

The NCUSIF and TCCUSF assessment ranges for 2013 were announced at the November NCUA board meeting.

The agency in Letter No. 12-CU-13 said the NCUSIF is projected to remain at or slightly above the 1.3% normal operating level at the end of 2012. Any equity in excess of 1.3% will be transferred to the TCCUSF, as required by statute, the NCUA said, adding that “the strong performance of the NCUSIF is consistent with a steady reduction in troubled credit unions and an improving economy.”

Growth in insured shares, the cost and pace of credit union failures, and NCUSIF investment yields will drive the NCUSIF’s equity ratio in 2013, the NCUA added. Credit union failures are expected to remain relatively low throughout 2013 and beyond.

The letter also detailed the factors that the NCUA considers when it sets the yearly TCCUSF assessment levels. The agency said it considers:

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