Corporate Stabilization Assessment Set at 25 Basis Points, Lower 2012 Assessment Expected
August 30, 2011 - On August 29, the National Credit Union Administration (NCUA) Board announced a 25 basis points assessment for the corporate stabilization fund totaling $1.96 billion.
The Board based the 2011 assessment on projected fixed, near-term net cash flow needs with the expectation that future assessments could be lower. At the August 29, 2011 NCUA Board meeting, the agency announced that near term cash needs prior to 2013 have decreased from $2.94 to $2.7 billion. This year's assessment will pay for a large amount of these costs, resulting in approximately $700 million for 2012 needs, or nine basis points of insured shares. The NCUA will invoice credit unions for the 2011 assessment shortly and it will be due Sept. 27.
Also at the NCUA Board meeting, a proposed rule was approved with eight technical amendments to Part 704, Corporate Credit Unions. The changes are intended to relieve some regulatory burden for corporate credit unions and to facilitate access to liquidity. The proposed rule was approved with a 30-day comment period and the changes can be viewed here.
Additionally, the NCUA Board established a NCUA Guaranteed Note (NGN) Securities Management and Oversight Committee with support staff. The Oversight Committee will be supported by five new staff positions. According to NCUA, "These resources, together with resources provided by other agency offices, will ensure that NCUA fulfills its ongoing responsibilities under the NGN Program in a manner that promotes transparency, efficiency, and accountability." View more about the Oversight Committee here.