CUNA President/CEO Jim Nussle called NCUA’s decision to close the Temporary Corporate Credit Union Stabilization Fund and begin issuing refunds in 2018 a victory for credit unions. Board Chairman J. Mark McWatters and board member Rick Metsger both voted Thursday to close the fund and set the normal operating level at 1.39%.
“The NCUA board voted to ensure that credit unions will receive the funds they deserve 2018. We thank Chairman McWatters and board member Metsger,” said CUNA President/CEO Jim Nussle. “This is a win for credit unions because they are the best stewards of credit union resources. More than 90% of credit unions who weighed in during the comment period were in favor of CUNA’s position.”
CUNA was the only national trade association for credit unions to advocate for NCUA to close the stabilization fund and merge it with the National Credit Union Share Insurance Fund, thus enabling credit unions to start receiving refunds in 2018. Additionally, CUNA raised concerns about NCUA’s proposal to set the normal operating level at 1.39%.
"CUNA wrote to the agency saying the proposed NOL was too high, but the agency indicated it was retaining this level to provide additional cushion to the share insurance level if there were to be an economic downturn," said Nussle. "Moving forward, we will continue to engage with the agency to ensure any raise is merely temporary.”
CUNA is currently analyzing NCUA’s full plan for the stabilization fund closure, additional coverage will be available later at CUNA News.