The NCUA’s plan to close the Temporary Corporate Credit Union Stabilization Fund and setting the share insurance fund’s operating level was published in the Federal Register Thursday. Comments on the proposal are due by Sept. 5.
The NCUA approved the request for comment at its July board meeting, and CUNA plans to work closely with NCUA throughout the process.
The notice outlines how NCUA would shut down the fund and transfer the fund assets to the share insurance fund, from which it would make a distribution.
The stabilization fund would be shut down Oct. 1 and a distribution would be made in the second quarter of 2018. The projected 2018 distribution to credit unions would be $600 to $800 million with a total projected distribution of $1.4 to $1.7 billion, with the balance to be paid at a later date.
NCUA would also increase the normal operating level of the NCUSIF from 1.30% to 1.39% because of the risk to the fund when it includes stabilization fund assets.
CUNA will have a detailed analysis of the distribution and increase in the normal operating level available soon.