No Stabilization Fund rebate possible now: NCUA

The NCUA this week reaffirmed its position that it cannot now provide credit unions with rebates from the Temporary Corporate Credit Union Stabilization Fund.

The board received a staff briefing on the fund at its December meeting.

“We can’t rebate funds at this time,” Larry Fazio, the agency’s director of examination and insurance told the board, adding that staff estimates could be updated in the future depending on market performance and other factors.

Credit union trade groups had called on the board to approve a rebate to credit unions as soon as possible.

Under federal law, the fund is to be used to provide the agency with the ability to mitigate costs from stabilizing the corporate credit union system.

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