NAFCU Asks Forbearance on Share Insurance Assessment
NAFCU has repeated its previous request of NCUA to keep any assessment levied on credit unions for the Share Insurance Fund as low as possible.
"NAFCU is again urging the agency exercise considerable forbearance with regard to the assessment for the NCUSIF," NAFCU CEO Fred Becker wrote in a Sept. 9 letter to the agency Chairman Debbie Matz.
"We fully recognize the importance of maintaining the NCUSIF at a level above 1.0 and the difficulty of managing the equity ratio with 'a fine measure of precision while maintaining a reasonable margin of safety,' as you noted in your remarks at NAFCU's 43rd Annual Conference and Exhibition in July.
"We continue to believe, however, that NCUA can effectively manage the fund by striving for an equity ratio at a level below 1.3. In this regard, we also want to thank you and your fellow Board members for having asked its 'staff to sharpen their pencils and arrive at a number that will safely maintain the fund and not overburden credit unions,' as recently noted by Board Member Fryzel. We further very much appreciate Board Member Fryzel's statement that indications are that the NCUSIF assessment will be 'in a range comfortable for the great majority of credit unions.'
"It is without question that a large assessment at the upper range of that previously provided by the agency would have an adverse impact on the industry, and most importantly on those credit unions that are most vulnerable. Accordingly, we ask that the agency make every effort not to acerbate the very unfortunate situation in which some credit unions currently find themselves with respect to both ROA and capital," he wrote.