ALEXANDRIA, Va. (8/9/13)--In its Letter to Federally Insured Credit Unions (13-CU-06) released Thursday, the National Credit Union Administration reminds all credit unions to expect an invoice in September for their assessment for the Temporary Corporate Credit Union Stabilization Fund (TCCUSF). The payment is due Oct. 16.
The NCUA, at its July open board meeting, declared an assessment for the TCCUSF of eight basis points (bp) of credit unions' insured shares as of June 30, 2013. The assessment is at the very low end of the NCUA's estimated range of 8-11 bp announced last November and is a significant improvement over last year's assessment of 9.5 bp.
The Credit Union National Association has noted that with the improvement of the performance of the NCUA's legacy assets, stabilization fund assessments should no longer be necessary after the 2013 payment. The range for any additional assessment for 2014, if any, will be set by the NCUA board in November.
The NCUA letter also provides answers to key questions about the assessment. The topics addressed include:
Why must all credit unions pay assessments?
Why is the assessment set at 8 basis points?
How should my credit union account for the assessment?
What is the impact of the 2013 assessment on credit unions' earnings and net worth?
Will examiners take the effect of the assessment into account when evaluating credit union earnings and net worth?
What are the net remaining projected costs of the corporate resolution program?
Use the resource link to read the complete letter.