Board to consider comment period on closing corporate fund

July 12, 2017 -- A comment period about closing the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) – the fund established by NCUA to resolve troubled corporate credit unions – will considered by the NCUA Board when it meets next week for its July open board session in Alexandria, Va.

The two-member board will also consider setting the National Credit Union Share Insurance Fund “normal operating level” during the meeting, and a proposed rule on Part 741 of its rules and regulations (requirements for insurance) about share insurance fund equity distributions.

Closing the corporate stabilization fund has been the top priority for NCUA Chairman J. Mark McWatters, as outlined early in the year. “It is important that the agency maintain a strong Share Insurance Fund for the mutual benefit of the credit union community and the taxpayers,” he said in a February speech to the CUNA Governmental Affairs Conference. “It is also important for the NCUA to avoid or minimize any insurance fund premiums, whenever the agency may do so responsibly, and keep that money at work in the credit union community. We have a potential opportunity to accomplish both of these objectives by closing, in 2017, the Temporary Corporate Credit Union Stabilization Fund into the Share Insurance Fund,” he said.

Also in that speech, McWatters asserted that closing the fund would trigger the “multi-year process” of rebating surplus funds to federally insured credit unions, “putting this money back to work in the community as soon as possible and, preferably, before the end of this year.”

In other action and reports at its 10 a.m. meeting July 20, the board will:

  • Consider a proposed rule on emergency mergers under Part 701 (Organization and Operations of Federal Credit Unions);
  • Hear a board briefing on the agency budget at mid-year;
  • Hear a 2nd quarter ’17 report on the share insurance fund.

LINK:
NCUA Board agenda, July 20