Tuesday, November 30, 2010 10:48:38 AM
MADISON, Wis. - In the wake of recent NCUA assessments, CUNA's Economic and Statistics Department has released a White Paper that compares NCUA and FDIC assessments over the past three years, as well as the projected assessments over the next decade.
Based on this analysis, the deposit insurance fund assessments charged by NCUA over the last three years have averaged 25% lower than the assessments that the Federal Deposit Insurance Corporation (FDIC) has charged to banks during that same time period.
CUNA examined past insurance fund assessments and in the paper projects the likely amounts of future assessments, finding that the FDIC's assessments levied since the beginning of 2008 have totaled 47 basis points (bp) of total deposits, equivalent to 52 bp on insured deposits. NCUA's assessments have totaled 41 bp of insured shares over that same time period, a number nearly one-fifth below the amount charged by the FDIC.
The paper projects that both groups will have to impose significant assessments on their insured institutions to restore their funds in the coming years. The NCUA's combined credit union assessments for both NCUSIF premiums and Corporate Stabilization charges will likely average eight bp per year until 2021, for a total of 90 bp.
The Comparing Future NCUA and FDIC Assessments White Paper can be found on the Corporate Credit Union Information Center on the League Web site at http://www.njcul.org/Data/Sites/1/corporates/ncusiffdicfinal.pdf.