ARLINGTON, Va.–Following NCUA’s announcement that next week it will begin distributing $735.7-million in distributions from the share insurance fund to credit unions, NAFCU said it will continue to press the agency to pay even more out.
"We are pleased that credit unions will be receiving their dividend from the merger of the funds but will continue to push for more monies to be returned to credit unions,” said Carrie Hunt, NAFCU EVP of Government Affairs and General Counsel.
The distribution is the result of a 2017 vote by the agencies board to merge the Temporary Corporate Credit Union Stabilization Fund with the National Credit Union Share Insurance Fund. That move was made in conjunction with a decision to raise the Normal Operating Level of the NCUSIF to 1.39%, a move NAFCU has opposed. The trade group said it fought to keep the NOL at 1.3% so credit unions could realize the fullest distribution possible, and it continues to do so.
“The NCUSIF's equity ratio currently stands at 1.46%, above the NOL of 1.39%,” NAFCU said in a statement. “In February, the NCUA revised its distribution to credit unions this year to be $735.7 million; a significant portion of the funds recovered from the corporate resolution process was retained in the NCUSIF to reach the new NOL.”