NCUA Board Lowballs Corp Assessment
ALEXANDRIA, Va. — On July 25, the NCUA Board approved a 0.08% 2013 assessment to federally insured credit unions for the Temporary Corporate Credit Union Stabilization Fund. Those eight basis points represent the lowest end of the NCUA’s estimate of eight to 11 basis points announced in November 2012 and will generate at least $700.9 million when the funds are collected in October. It is the lowest corporate assessment credit unions have paid since making their first payment in 2009.
According to the NCUA’s board action memorandum, the agency will apply $650 million toward payment on outstanding borrowings to the Treasury, which will reduce the total amount outstanding to not more than $4.075 billion. The payment will increase the NCUA’s available credit line to $1.925 billion, which would cover unexpected contingencies for both corporate stabilization and the National Credit Union Share Insurance Fund.
The board also approved a $2.6 million decrease in its 2013 operating budget, resulting in a revised total budget of $248.8 million.
Because federally insured credit unions have already paid 2013 operating fees, the excess funds will be used to offset 2014 operating budget requirements, which will be revealed in November.