NCUA’s work on merging the National Credit Union Share Insurance Fund and the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) is ongoing and complex, agency staff said at Thursday’s board meeting. The agenda featured updates on both funds, as well as an approval of a member business lending (MBL) rule from Illinois.
According to NCUA staff, nothing so far has presented itself that would prohibit the merger of the 2 funds, but research is not complete. Staff did not provide an indication of timing of any recommendation or action by the board on potentially merging the funds.
The Share Insurance Fund posted a net loss of $41.9 million in the first quarter of 2017, primarily due to the increase in the provision for insurance losses.
The TCCUSF net position increased to $1.5 billion from $500 million in the year ending Dec. 31, 2016. During the year, $1.7 billion of the fund’s available cash was used to complete the repayment of all outstanding Treasury borrowings.
Based on current projections, NCUA expects no future stabilization fund assessments to credit unions.
The board also approved a change to Illinois’ member business lending rule. The state’s Department of Financial and Professional Regulation revised its MBL rule to provide parity with NCUA’s rule finalized in February 2016.