NCUA announces distribution of shared insurance fund
Washington, DC (July 17, 2018) – The National Credit Union Administration (NCUA) today announced it will issue dividends for more than 5,700 institutions eligible for the Share Insurance distribution. Credit Union National Association (CUNA) pushed for disbursements this year and submitted a comment letter with NCUA providing input on how the agency should amend its share insurance rule to provide for equity distributions.
Next week, statements will be mailed to eligible credit union recipients, indicating the amounts they will receive. The board unanimously voted at its February meeting to declare a distribution in the form of a dividend in the amount of $735.7 million.
"We commend the NCUA Board for making the decision to start issuing refunds and see this as a victory for credit unions," said CUNA President/CEO Jim Nussle. "CUNA was the only national trade association advocating for refunds to begin in 2018, and more than 90% of credit unions who commented on NCUA’s proposal supported our position. Credit unions look forward to getting their money back and putting it to work for their members."
CUNA supported a transparent and equitable method for repaying credit unions and pushed for a temporary increase of four basis points in the fund Normal Operating Level (NOL) while the share insurance fund holds corporate legacy assets and continues to insist the increase that was adopted be only temporary and phased down to 1.3% by 2021 as the relative exposure of the legacy assets diminishes.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 110 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org.