NCUA maintains normal operating level of 1.33% after news of better than expected performance

At the Thursday, February 15 meeting of the NCUA board, the directors opted to maintain the Normal Operating Level (NOL) at 1.33%. During a presentation by NCUA CFO Eugene Scheid, the National Credit Union Share Insurance Fund (NCUSIF) equity ratio was shown to sit at 1.30% as of year-end 2023, below the approved NOL of 1.33%.

Under the FCU Act, a distribution to credit unions is required if the equity ratio exceeds NOL at the end of the calendar year and other statutory conditions are met.

Credit unions and trade groups have in the past expressed a desire to set the Normal Operating Level at 1.30%, which historically has proven adequate to ensure the safety and soundness of the Fund.

However, despite a stronger than expected performance in 2023—NCUA expected the equity ratio to be 1.27% at year end—they would not budge on the NOL.

 

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