Distributional Impact of Changing Assessment Base.

In the NCUA's White Paper on National Credit Union Share Insurance Fund Improvements, the agency proposed changing the assessment base from insured shares and deposits to total assets minus net worth. Read my April 6 blog.

If this proposal was to become law, only 456 natural person credit unions would see their portion of the NCUSIF assessment base increase as of the end of 2014. This would mean these credit unions would pay higher deposit insurance premiums, if assessed and the aggregate premium payments are revenue neutral.

All other credit unions would either see a reduction or no change in their share of the NCUSIF assessment base.

Below is an analysis of credit unions by asset size that would see an increase their share of the NCUSIF assessment base.

Two credit unions with more than $10 billion in assets would see their portion of the NCUSIF assessment base increase with the change.

Eleven credit unions with assets between $5 billion and $10 billion would experience an increase in their portion of the NCUSIF assessment base.

For credit unions with assets between $1 billion and $5 billion, 86 credit unions would encounter an increase in their share of the NCUSIF assessment base.

The portion of the assessment base for 63 credit unions with assets between $500 million and $1 billion would increase.

Sixty-two credit unions with assets between $250 million and $500 million would experience an increase in their share of the assessment base.

For credit unions with between $100 million and $250 million, 85 would see their portion of the assessment base grow.

Finally, 147 small credit union would see an increase in their share of the NCUSIF assessment base.