Federally insured credit unions should expect their assessments to total 90.4 basis points through 2021, the vast majority to repay the Treasury Department's loan to rescue the corporate credit unions, according to a report by CUNA.
The trade association projects that credit unions will be assessed 10 basis points during that period to shore up the NCUSIF, including 5 basis points for 2011 and the same amount for 2012. However, the agency is likely to levy assessments totaling 80.4 basis points--including 9.2 bp for 2011 and 8.8 basis points for 2012--to pay off the Temporary Corporate Credit Union Stabilization Fund.
Earlier this month, the NCUA projected that next year's NCUSIF premium would range from 0 to 10 bp for the NCUSIF and 20-25 bp for the Corporate Stabilization Fund.
CUNA Chief Economist Bill Hampel wrote in the report that the health of the economy in general and credit unions in particular will determine whether their projections prove correct. He wrote that in the event of a weak economy the elevated assessments would likely last longer and if the recovery is stronger than anticipated credit unions might need to pay less.
Hampel noted that despite the costs to credit unions of assessments and premiums by the NCUA, they've fared better than banks have with the FDIC.
During the past three years, the NCUA has assessed premiums totaling 41 basis points of insured shares while the FDIC's total assessment has been 52 bp of insured deposits.
CUNA projects that through 2021, the FDIC's assessments will total 144 bp, an average 13 bp annually.
During that same period, the 90.4 bp projection for the NCUA averages 8.2 bp annually.
In 2011 and 2012 the FDIC and NCUA assessments will likely be close. In 2011, the NCUA assessment will be 14.2 bp, compared with 14.6 bp for the FDIC. In 2012, the NCUA assessment will likely be 13.8 bp, compared with 14.5 bp for the FDIC.
But from 2013-2021, the NCUA assessments will likely range from 5.7 to 8.4 bp each year while the FDIC's range will likely be between 9.4 bp and 14.5 bp annually.