WASHINGTON (11/30/10)--The deposit insurance fund assessments charged by the National Credit Union Administration (NCUA) over the last three years have averaged 25% lower than the assessments that the Federal Deposit Insurance Corporation (FDIC) has charged to banks during that same time period, according to a Credit Union National Association (CUNA) white paper. The paper, which examines past insurance fund assessments and projects the likely amounts of future assessments, found that the FDIC’s assessments levied since the beginning of 2008 have totaled 47 basis points (bp) of total deposits, equivalent to 52 bp on insured deposits. The NCUA’s total assessments have totaled 41 bp of insured shares over that same time period, a number that is nearly one-fifth below the amount charged by the FDIC. CUNA in the paper projects that both groups will have to impose significant assessments on their insured institutions to restore their funds in the coming years. The NCUA’s combined credit union assessments for both NCUSIF premiums and Corporate Stabilization charges will likely average eight bp per year until 2021, for a total of 90 bp. CUNA has projected that the FDIC’s assessments will total 144 bp by 2021, a full 50% above the total amount to be assessed by the NCUA. However, CUNA noted that both of these assessment estimates are derived from the NCUA and FDIC’s current expectations regarding future losses from failed institutions and the performance of various legacy assets. If the economic recovery is slower than expected, or stalls completely, future assessments will be higher than these projections. However, a stronger than expected recovery could reduce these future assessments, the paper added. "We are now facing the highest deposit insurance assessments for banks since the early 1990s, and for credit unions since the NCUSIF was capitalized in its current form in the early 1980s" said Bill Hampel, CUNA's chief economist. "This is the unfortunate consequence of the worst financial crisis in the U.S. since the 1930s," he added.