NCUA Board approves closure of TCCUSF

Yesterday, the NCUA Board approved closing the Temporary Corporate Credit Union Stabilization Fund effective Oct. 1, 2017, and setting the Share Insurance Fund’s Normal Operating Level (NOL) at 1.39 percent, effective Sept. 29, 2017. The Board believes a NOL of 1.39 percent is necessary in order to withstand a moderate recession over the next five […]

Yesterday, the NCUA Board approved closing the Temporary Corporate Credit Union Stabilization Fund effective Oct. 1, 2017, and setting the Share Insurance Fund’s Normal Operating Level (NOL) at 1.39 percent, effective Sept. 29, 2017. The Board believes a NOL of 1.39 percent is necessary in order to withstand a moderate recession over the next five years.

Board Chairman J. Mark McWatters and board member Rick Metsger both voted Thursday to close the fund. The Board will continue to periodically evaluate the NOL, and any change to the NOL of more than one basis point will require public notice and opportunity for comment.

With the closure of the Stabilization Fund and a NOL of 1.39%, the NCUA estimates a 2018 equity distribution to credit unions of $600 – $800 million. This will be the first in a series of likely distributions between 2018 and 2022 as the legacy assets mature.

The board will publish a public notice in the Federal Register explaining the bases for today’s actions.

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The League of Southeastern Credit Unions & Affiliates represents nearly 300 credit unions throughout Alabama, Florida, and Georgia. It has a combined total of almost $200 billion in assets and 12.4 million members. LSCU provides advocacy, compliance services, education and training, cooperative initiatives, and communications.

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