ARLINGTON, Va.–There was some good news and some concerning news coming out of last week’s NCUA board meeting.
As CUToday.info reported, during the board meeting an update was offered on the state of the National Credit Union Share Insurance Fund (NCUSIF), with the agency reporting its equity ratio is projected to be 1.22% at mid-year, which is just two basis points above the threshold at which NCUA is required to create a net worth restoration plan.
While there has been some discussion credit unions will be charged a premium during 2021 to shore up that equity ratio, the board adjourned without taking any such action.
NAFCU EVP and General Counsel Carrie Hunt said the trade group was happy to see the board opted not to pursue any premium; NAFCU maintains its position no assessment is necessary.
‘Robust Discussions’
“Clearly, everyone will be looking at the economic indicators as the year progresses and into next year,” said Hunt. “While we do not think there needs to be a premium this year, Chairman (Todd) Harper wants statutory changes in how the NCUSIF works. We don’t think there needs to be any changes. But it’s great to have those robust discussions and NAFCU strongly supports a strong NCUSIF.”