ARLINGTON, Va.—Following NCUA’s announcement last week that it has approved a $160.1 million equity distribution to credit unions from the National Credit Union
Share Insurance Fund (NCUSIF), NAFCU said there are still more funds available to be returned.
"NAFCU thanks the NCUA for reviewing and lowering the NCUSIF's normal operating level, so that credit unions can receive a refund this year. However, we continue to believe that it should be reset to 1.3% so credit unions can realize the fullest distribution possible," said NAFCU President and CEO Dan Berger.
Based on the NCUA's final NCUSIF audit, the equity ratio on insured shares stands at 1.39% – higher than the current normal operating level (NOL) of 1.38%. During its December meeting, the NCUA board approved of decreasing the NCUSIF NOL from 1.39% to 1.38%, effective immediately.
The NCUA voted September 2017 to merge the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) with the NCUSIF. At the same time, NCUA also elected to raise the NOL of the NCUSIF to 1.39% from 1.3%. As a result of this merger, credit unions received $735.7 million in distributions from the NCUSIF in July 2018. Credit unions had paid $4.8 billion in corporate stabilization assessments, NAFCU noted.