Small Washington State CUs Get Temporary Asset Assessment Fee Reduction

OLYMPIA, Wash. -Credit unions in Washington State with less than $22 million in assets were granted a temporary reduction in their quarterly assessments by the state’s Division of Credit Unions. According to provisions in the state’s credit union statute, WAC 208-418-020, the Director has the authority to waive any portion of any fee payable by a credit union. Instead of paying a fixed assessment fee amount, CUs with less than $22 million in assets will pay the lesser fee amount based on a pre-determined multiplier. Credit unions with assets of $500,000 or less will continue to have no asset assessment fee. The Division estimates the reduction will save all credit unions under $22 million in assets about $12,300 per quarter. The fee reduction began with the fee that was due Jan. 1, 2003. It remains in effect for the April 2003 quarterly assessment. In July, the DCU will review its asset assessment revenue against its expenses to determine if it will continue with the waiver of a portion of the asset assessment fee through June 2004. According to a DCU bulletin, the agency implemented the temporary fee reduction primarily for two reasons: first, it wanted to make asset assessments more standardized across asset size categories, and second, “the Division has been aware that many credit unions, have been under significant earnings pressure over the past year.”