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NCUA sets 2013 corporate stabilization assessments

Mon, Jul 29, 2013

Columbia, Maryland

The NCUA Board of Directors held their monthly board meeting on Thursday, July 25, at the Agency’s Alexandria headquarters.  The Board dealt with a crowded agenda that, most notably, included the 2013 Temporary Corporate Credit Union Stabilization Fund (TCCUSF) Assessment.  The following is a summary of the actions taken by the Board at the meeting.

TCCUSF Assessment

The Board approved an assessment of 8 basis points for each federally-insured credit union on their insured shares as of June 30, 2013.  This assessment will bring in an estimated total of $700.9 million, thus allowing the Agency to make a scheduled repayment of at least $650 million in TCCUSF borrowings for November 2013.  After this assessment, the Agency projects that the remaining assessments over the life of the TCCUSF range between $900 million and $3.2 billion with approximately $4.8 billion already having been assessed through 2013.  This means that the total projected range of assessments for the TCCUSF is estimated by the Agency to be between $5.7 billion and $8 billion.

 

Proposed rule: Electronic Filing Requirement

The proposed rule would change the NCUA’s regulations regarding the filing of financial, statistical, and other reports, as well as credit union profiles.  The rule would require that all federally-insured credit unions file this information electronically using the Agency’s information management system or other electronic means specified by the NCUA.  This would make it so manual filings would no longer be valid, thus changing the rule from having to file electronically only if the credit union has the capabilities.  According to the Agency, all but 59 credit unions already file electronically and the NCUA has been providing free resources to those that still file manually to help transition them to electronic filing.  The proposal has a 30-day comment period.

 

Share Insurance Fund Report

The NCUSIF finished the first half of 2013 with a net income of $112.6 million ($103.2 million in Q2) and a 1.31% equity ratio.  The number of CAMEL Code 4/5 credit unions dropped to 330 by the end of Q2 (down from 369 at the end of 2012) with CAMEL Code 4/5 credit unions representing 1.53% of the total insured shares at the end of Q2.  CAMEL Code 1/2 credit unions increased their percent of assets held from 86.8% at the end of 2012 to 88% at the end of Q2.  On the year, there have been 9 credit union failures, which if the rate holds through the rest of the year, means that there will be less than last year’s 22 failures.

 

NCUA Budget Reprogramming

The Agency’s 2013 budgeted operating costs were reduced by $2.6 million for a revised total budget of $248,811,780 for the year.  The savings come from employee pay and benefits, as well as Agency travel costs.  That being said, the NCUA is increasing its staff by one full-time equivalent employee and will be incurring more expenses for contracted services.

 

Proposed Interpretive Ruling & Policy Statement: Minority Depository Institution Preservation Program

Section 367 of Dodd-Frank required the establishment of a program to preserve the number and character of minority depository institutions.  The NCUA issued a proposed Interpretive Ruling & Policy Statement as the basis for establishing a Minority Depository Institution Preservation Program designed to achieve the goals of preserving and encouraging Minority Depository Institutions in minority communities.