ALEXANDRIA, Va. (12/19/14)--The National Credit Union Administration is projecting no Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessments this year, and "only a possible small premium" for the National Credit Union Share Insurance Fund (NCUSIF), according to a letter sent to federally insured credit unions Thursday.
The letter, sent to boards of directors and CEOs of federally insured credit unions, outlines a projected potential NCUSIF premium of zero to five basis points of insured shares. These projections are the same as they were for 2014, and no premium was charged this year.
The more than $1.75 billion in legal recoveries against Wall Street firms that sold faulty securities to five failed corporate credit unions is the primary reason for no assessment, according to the agency.
The NCUSIF remains at the 1.3% normal operating level as of Sept. 30, and after Dec. 31 the agency will transfer anything over that number to the TCCUSF, as required by statute.
According to the NCUA, three factors will drive the NCUSIF's equity ratio in 2015: growth in insured shares; yield on NCUSIF investments; and the cost and pace of credit union failures.
However, in the event of a very large credit union failure, "actual premium needs in 2015 could vary from the projected range," the letter reads.