Premium Assessed for FICUs, NCUA to Address Final Corporate Rule on Sept. 24
Sept. 17, 2010 Federally insured credit unions will be assessed 12.42 basis points to increase the National Credit Union Share Insurance Fund (NCUSIF) equity ratio to the required 1.30 percent, the National Credit Union Administration (NCUA) announced at its September 16 Board meeting.
"This decision is not taken lightly," said NCUA Chairman Debbie Matz, "But it is absolutely necessary." NCUA will provide credit unions with invoices in October with payment due in November. NCUA Director of Examination and Insurance Melinda Love indicated that though there is a lot of economic variability, it is likely that there will be another assessment in 2011 to keep the equity ratio at its required level. To view more information on the premium follow this link to a NASCUS summary. (Member log-in required).
In addition, NCUA Chairman Debbie Matz announced that the Board will discuss its final corporate credit union rule, Part 704, and legacy asset plans at an open Board meeting on September 24 at 2:30 p.m.
During the meeting, NCUA Chief Financial Officer Mary Ann Woodson provided a status report on the NCUSIF and the Temporary Corporate Credit Union Stabilization Fund. Woodson indicated as of August 30, 2010, the NCUSIF equity ratio was at 1.18 percent. She informed the board that the number of Camel Code 4/5 credit unions increased to 360 from 315 at this time last year and that year to date there have been 23 credit union failures.
In addition, the NCUA Board approved final rules for redemption of capital accounts for low income federal credit unions and an amendment to the general lending rule to allow a higher interest rate ceiling for short-term, smaller-dollar loans for federal credit unions. The Board also approved the adoption of accounting standards promulgated by the Federal Accounting Standards Advisory Board for the NCUSIF (previously the NCUSIF followed Financial Accounting Standards Board (FASB) standards.)
To view materials from the September NCUA Board meeting, follow this link.