The NCUA board unveiled its plan for share insurance fund equity distributions at its Thursday meeting. CUNA strongly supported closing the Temporary Corporate Credit Union Stabilization Fund last year.
The board unanimously voted to declare a distribution in the form of a dividend in the amount of $735.7 million for the year ending Dec. 31, 2017. The board estimates this dividend will be paid in the third quarter of 2018.
“We thank NCUA for its work to ensure stabilization fund distributions start getting to credit unions in 2018. As the only national trade association that advocated for distributions to start this year, CUNA and the leagues were instrumental in getting credit unions those funds, which can be put to work on behalf of members,” said CUNA President/CEO Jim Nussle.
CUNA supports a transparent and equitable method for repaying credit unions, and outlined a potential methodology for NCUA in its September comment letter on the proposed closure.
CUNA supported a temporary increase of four basis points in the fund Normal Operating Level (NOL) while the share insurance fund holds corporate legacy assets and continues to insist the increase that was adopted be only temporary and phased down to 1.3% by 2021 as the relative exposure of the legacy assets diminishes.