Shoring up the corporate credit unions could cost credit unions an assessment of between eight and 20 basis points a year-with an average of 14–over seven years, if Congress approves the NCUA's proposal for a stabilization fund, NCUA Deputy Executive Director Larry Fazio said today.
"Our goal is to keep the premium to a manageable level," he said during a conference call with reporters.
The agency has asked Congress to give the agency $6 billion in borrowing authority which it would use to set up a fund that would replenish the NCUSIF. Natural person credit unions would repay the fund over a seven-year period.
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NCUA Executive Director David Marquis said they are opposed to requesting a longer repayment period because "the longer out you go, the more problematic it could become" because of changing economic conditions.
NCUA Director of Public and Congressional Affairs John McKechnie said the legislation that includes the fund could be introduced "in the next couple of weeks" and would most likely start in the Senate where a related measure is already being discussed.
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