Tuesday, February 22, 2011 1:27:00 PM
CUNA News Now reported today that NCUA "said it may not need to assess a National Credit Union Share Insurance Fund (NCUSIF) premium on credit unions in 2011. CUNA Chief Economist Bill Hampel has predicted that the 2011 NCUSIF premium would total between 5 and 10 basis points (bp)."
NCUA held a Town Hall meeting last Thursday where NCUA's Office of Examination and Insurance Director Melinda Love said that "although the agency must ensure that it can still handle its cash management needs, it is delaying the NCUSIF assessment for as long as it possibly can. The NCUSIF premium, if assessed, will be released in the fall," she added. NCUA also reported last week, in its Board meeting minutes from February 17, that the NCUSIF's reserve balance stood at over $1.26 billion.
New Jersey Credit Union League President/CEO Paul Gentile discussed the results of the NCUA's board meeting and the NCUSIF premium in his weekly column. In his column titled "Encouraging NCUSIF Numbers, Exec Comp, and Possible Interchange Delay" that appeared in Friday's Weekly Exchange, said "Credit unions entered the year" with "a natural person assessment of 0-10 basis points, but there was some encouraging news yesterday from NCUA. NCUA reported that there were no credit union failures in January and the equity ratio stood at 1.28% on Jan. 31, above the statutorily required 1.2%. NCUSIF's reserves are $1.2 billion, with $181.4 million earmarked for anticipated losses of troubled CUs."
Gentile added, "As far as troubled CUs, NCUA reported that there are 369 CAMEL 4 and 5 credit unions, totaling $38.2 billion, or 5%, of total CU assets."
The CUNA News Now article is available at:
Gentile's column is available at: