NCUA Expects TCCUSF Assessment of 8-11 Basis Points, No NCUSIF Assessment (Misc News: November 28, 2011)
The NCUA board expects the 2012 Temporary Corporate Credit Union Stabilization Fund assessment to be between 8 and 11 basis points, according to a email from CUNA President and CEO BIll Cheney that went to the leagues. In addition, the NCUA does not anticipate a premium for 2012 National Credit Union Share Insurance Fund premium for 2012.
While NCUA Chair Debbie Matz said it did not anticipate an NCUSIF premium, the board set a range of 0-6 basis points for a potential NCUSIF premium in case problems at natural person credit unions materialize.
The TCCUSF assessment for 2011 was 25 basis points. There was also no NCUSIF premium in 2011.
Also at its board meeting, the NCUA approved a 5.1-percent budget increase for 2012. The $236 million spending plan includes funds for 33 new employees, 26 of whom will work in examination-related positions.
Matz said the budget increase is less than half what has been during the last three years. She added that the budget increase was kept down through cost-cutting and an employee pay freeze.
Matz calls the increase “an investment that credit unions are making to make the system safe and sound,” saying the funds ultimately save credit unions billions of dollars by stabilizing institutions that were in danger of failing.