NCUA: NCUSIF at 1.26%; no further TCCUSF assessments expected
The National Credit Union Share Insurance Fund had an equity ratio of 1.26 percent as of March 31, staff told NCUA’s board during Thursday’s open meeting. An update on the Temporary Corporate Credit Union Stabilization Fund showed that no further assessments are expected.
NCUA Chief Financial Officer Rendell Jones delivered the quarterly update on the NCUSIF, reporting that the fund ended the first quarter (March 31) with a net position of $12.9 billion. Since the deadline for credit unions to make their 1 percent NCUSIF deposit adjustments was April 17, this ratio does factor in those changes.
Last November, NCUA staff estimated a potential NCUSIF premium charge in 2017 of 3 to 6 basis points. NAFCU is monitoring the fund’s financials and pushing the NCUA to only assess a premium charge if it becomes legally necessary. The law only requires a premium if the NCUSIF equity ratio falls below 1.2 percent, but the agency’s current analysis indicates that is not expected to happen this year.
Jones, also delivering a quarterly report on the TCCUSF, said the stabilization fund’s net income for year-end 2016 was $993 million and that no further stabilization fund assessments are currently anticipated.
continue reading »