Wednesday, February 11, 2015

NCUA Asks Congress for Authority to Charge Risk-Based NCUSIF Premiums

In footnote 29 of Larry Fazio's testimony, the National Credit Union Administration stated that a legislative "priority would permit NCUA to charge risk-based premiums for the Share Insurance Fund much like the Federal Deposit Insurance Corporation charges for the Deposit Insurance Fund. Risk-based premiums would lessen the funding burden on small credit unions, which generally pose less risk to the Share Insurance Fund."

In a July 24, 2009 blog post, I made the case for moving from the current flat rate insurance premium system to one based upon risk.
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2 comments:

  1. AnonymousFebruary 11, 2015 at 11:32 AM

    Would this be in addition to the one percent that they already require the CUs to deposit? NCUA has argued/touted in the past that the one percent deposit structure is superior to the FDIC's risk-based structure as it allow credit unions to avoid insurance premiums.

    ReplyDelete
  2. AnonymousFebruary 12, 2015 at 12:53 AM

    Looks like Larry mite be getting sum of his ideaz from Keith. Hope you keep your blog up post-retirement or larry mite run out of ideaz. That wood be a complete tragedy for the credit union community.

    ReplyDelete

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