The NCUA’s Share Insurance Fund is in solid shape, with the agency’s equity ratio standing at 1.26% at the end of June, agency CFO Eugene Schied told the NCUA board Thursday at its monthly meeting.
And Schied said the equity ratio is expected to climb to 1.30% by the end of the year.
That is still below the agency’s normal operating level, which is set at 1.33%. At one point during the pandemic the equity ratio had dipped close to 1.20%, which would have required the agency to adopt a restoration plan that could have required charging federally insured credit unions a premium.
“The improved health of the Share Insurance Fund validates the NCUA Board’s wisdom in delaying the imposition of preemptive premiums on the industry earlier in the pandemic when we teetered dangerously close to the 1.20 percent statutory minimum for developing a plan to recapitalize the Share Insurance Fund,” board Chairman Todd Harper said.
continue reading »