NCUA Board May Solicit Comment on Closing Stabilization Fund
The NCUA board will decide on July 20 whether to solicit comments on closing the temporary corporate stabilization fund and on setting a normal operating level for the agency’s Share Insurance Fund.
Board Chairman J. Mark McWatters said earlier this year that he was optimistic that the agency would be able to fold the stabilization fund into the Share Insurance Fund.
McWatters said in February that the insurance fund’s equity ratio ended 2016 at 1.27%, below the board-approved normal operating level of 1.3%. Folding the stabilization fund into the insurance fund would help the insurance fund, with the goal of being able to rebate surplus funds to federally insured credit unions.
The board also will receive its quarterly briefing on the Share Insurance Fund.
Under federal law, the stabilization fund is used to provide the agency with the ability to mitigate costs from stabilizing the corporate credit union system.
Also at its July meeting, the board will consider proposed rules governing Share Insurance Fund Equity Distributions and Emergency Mergers. The board also will receive a mid-session briefing on its budget.
On Wednesday, July 19, the board will meet in closed session to discuss supervisory and personnel matters.