ALEXANDRIA, Va.–Ahead of the board vote on the decision to close the Temporary Corporate Credit Union Stabilization Fund, as well as raise the Normal Operating Level of the NCUSIF, NCUA reported it received 663 comment letters, with nearly all favoring the distribution of equity to credit unions.
According to NCUA staff, a summation of the comment letters received show:
- Most either supported or did not expressly oppose closing the Stabilization Fund in 2017
- Some were concerned closure would affect total distributions and/or recoveries to former capital holders or result in less transparency.
- A “few did not support closure, claiming the NCUA can make distributions directly from the Stabilization Fund.”
- Almost all commenters agreed with a distribution as soon as possible.
- About half of the commenters opposed any increase to the normal operating level, with a common justification that 1.30% was sufficient during the last crisis.
- Most wanted a “full refund” of either all equity in the Stabilization Fund or all assessments paid.
- Some contended using Stabilization Fund equity to increase the Share Insurance Fund’s equity ratio is improper.
- Many commenters asserted that any increase to the normal operating level should be temporary.