NCUA Approves 12.4 Basis Point Assessment (Monitor: September 20, 2010)
The NCUA will assess credit unions 12.42 basis point assessment to fund the National CU Share Insurance Fund, the second charge since July, the agency’s board decided Thursday.
Agency staff said the premium will increase the NCUSIF's equity ratio to 1.3%, but warned that ratio will immediately begin to decline: "The forward looking analysis shows the premium is sufficient to maintain the level above 1.2% through June 30, 2011, while falling to 1.17% by year-end 2011."
NCUA is required to provide a restoration plan to Congress if the equity ratio falls below 1.2%.
Chairman Debbie Matz said, "I assure all stakeholders that the decision to charge this premium is not taken lightly. We understand that 2010 has been a challenging year. Many credit unions are struggling to contain costs.
"But I can say unequivocally: This premium is absolutely necessary to replenish the share insurance fund to a level that will protect America's 90 million federally insured credit union members. Members who have kept their savings within the federal coverage limit have never lost a penny – and we intend to keep it that way."
Click here to read the full letter from NCUA to credit unions explaining the change
CU Journal had speculated that the special assessment would be as high as 15 basis points.
(Full CU Journal story)