NAFCU on NCUSIF Equity Ratio
Citing a large number of its members that will be negatively affected if this year's assessments are above 20 basis points, NAFCU President/CEO Fred Becker again urged the NCUA to "use the authorized tools at its disposal to spread out assessment expenses."
In a letter sent last week to NCUA Chairman Debbie Matz, Becker said if the NCUSIF's equity ratio falls below 1.2%, the agency should develop a restoration plan to bring it to 1.2%, rather than maintaining it at its past operating level of 1.3%.
In responding to a previous letter from Becker and another one from CUNA President/CEO Dan Mica, Matz said the agency would make a decision about changing the equity ratio in the fall when it makes a decision about this year's assessments.
The Federal Credit Union Act mandates that the NCUSIF ratio must be between 1.2% and 1.5%.