The premium revenues will be allocated between the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) and the National Credit Union Stabilization Fund (NCUSIF). NCUA set the premium range for the NCUSIF between 0 and 10 basis points and the premium for the TCCUSF between 20 basis points and 25 basis points for next year.
NCUA stated that a combined premium assessment of 20 basis points would result in 80 credit unions seeing their capital ratios falling below the standard for being well capitalized or 7 percent abd 32 credit unions would become undercapitalized. Also, 760 credit unions would shift from reporting a profit to a loss.
If the combined premium is 35 basis points, then 148 credit unions will slip below being well capitalized, another 62 credit unions would become undercapitalized, and 1,200 credit unions will go from a profit to a loss.
How does this premium/assessment compare to what was charged to credit unions in 2010?
ReplyDeleteGeorge:
ReplyDeleteThe combined assessment rate for credit union in 2010 was 25.82 basis points. So, the 2011 assessment rate will probably be comparable to what federally-insured credit unions paid in 2010.
What is so disappointing about the announcement of the probable assessments was that the NCUA told attendees at the Los Angeles town hall less than a month ago to expect assessments in the 13 basis point range. Twenty is nowhere close to 13 (even though it is a better black jack hand) even in government speak.
ReplyDelete