WASHINGTON, DC (July 18, 2018) — National Association of Federally-Insured Credit Unions (NAFCU) Executive Vice President of Government Affairs and General Counsel Carrie Hunt today issued a statement following the National Credit Union Administration’s (NCUA) announcement that credit unions will receive $735.7 million in distributions from the National Credit Union Share Insurance Fund (NCUSIF) next week. Last year, the NCUSIF was merged with the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) resulting in a planned partial refund of credit unions funds being held by the NCUSIF.
“We are pleased that credit unions will be receiving their dividend from the merger of the funds but will continue to push for more monies to be returned to credit unions,” said Carrie Hunt, NAFCU EVP of Government Affairs and General Counsel.
Background
This distribution is the result of the NCUA Board vote last September to merge the TCCUSF with the NCUSIF. At the same time, NCUA also elected to raise the NOL of the NCUSIF to 1.39 percent. NAFCU was the only trade association fighting to keep the NOL at 1.3 percent so credit unions could realize the fullest distribution possible; the association continues to urge the NCUA to return the NOL to that level as soon as possible.
The NCUSIF’s equity ratio currently stands at 1.46 percent, above the NOL of 1.39 percent. In February, the NCUA revised its distribution to credit unions this year to be $735.7 million; a significant portion of the funds recovered from the corporate resolution process was retained in the NCUSIF to reach the new NOL.
Previously, NAFCU President and CEO Dan Berger authored an op-ed in Credit Union Journal outlining why credit unions deserve all of their money back, not just some. You may read it here.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
