WASHINGTON (11/22/13)--The National Credit Union Administration does not plan to charge a Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment in 2014. However, the NCUA warned that a TCCUSF assessment may be considered "if adverse conditions develop."
The National Credit Union Share Insurance Fund assessment for 2014 will be between zero and five basis points (bp), the agency added during Thursday's November open board meeting.
The Credit Union National Association urged the NCUA to set the range for the TCCUSF assessment as narrow as possible, starting with zero bp. CUNA Chief Economist Bill Hampel broek down what the assessment means for credit unions in a new Inside Exchange piece. (See News Now: Inside Exchange Breaks Down NCUA Assessment News.)
The NCUA is expected to receive $1.4 billion through a settlement with JP Morgan announced this week. The settlement funds "will greatly benefit credit unions" and "will enable NCUA to greatly reduce the assessments that all credit unions have to pay," NCUA Chairman Debbie Matz said this week.
Factoring the net proceeds from the JP Morgan settlement, the remaining assessment range falls to around minus $1 billion to plus $500 million, Credit Union National Association Chief Economist Bill Hampel said. "In other words, future rebates are now very likely," he said.
Credit unions have paid $4.8 billion in TCCUSF assessments since the fund was established. The projected net remaining assessments over the life of the TCCUSF, based on estimates from the second quarter of 2013, now range from -$0.2 billion to $1.6 billion.