NAFCU President and CEO Dan Berger today thanked House Financial Services Subcommittee Chairman Sean Duffy, R-Wis., for his push to ensure that any federal share insurance premium charged to credit unions be weighed fully for its potential impact on credit unions.
“NAFCU and its members thank Chairman Duffy for his leadership on this critical issue,” said Berger. “We appreciate his concerns about how the NCUA is managing credit union funds and, ultimately, credit unions’ ability to serve their members.”
Duffy, chairman of the House Financial Services Subcommittee on Oversight and Investigations, today requested information by Dec. 27 from NCUA Board Chairman Rick Metsger on the impact a National Credit Union Share Insurance Fund premium charge could have on credit unions’ lending.
More specifically, Duffy asked if the NCUA has done any economic modeling to show how a premium charge could impact credit unions’ lending and operations and what the agency is doing to improve its operations so as to prevent a premium charge on credit unions. Duffy also inquired about how NCUA was managing the corporate stabilization fund and any potential rebates to credit unions.
The NCUA Board last month estimated a potential 2017 share insurance premium of 3 to 6 basis points. By statute, the agency is required to charge a premium if the National Credit Union Share Insurance Fund’s equity ratio falls below 1.2 percent. As of Sept. 30, the ratio stood at 1.27 percent.
NAFCU maintains that no premium charge is necessary, urging instead that NCUA make operational changes to yield more positive results for the fund.