ALEXANDRIA, Va. – NCUA is projecting an NCUSIF premium range in 2013 of 0 to 5 points of insured shares, and a Stabilization Fund assessment range of 8 to 11 basis points of insured shares. The combined projected range is 8 to 15 basis points, according to the agency’s new forecast.

“The projected NCUSIF premium and Stabilization Fund assessment ranges correspond to the strong positions of these funds and an improving economic environment,” the agency said in a statement.

NCUA said the NCUSIF is projected to remain at or slightly above the 1.30% normal operating level at the end of 2012. Any equity in excess of 1.30% will be transferred to the Stabilization Fund, as required by statute.

NCUA said drivers of the equity ratio in 2013 will be similar to those of most years: growth in insured shares, cost and pace of CU failures, and yield on investments. It said in most of its stress scenarios the equity ratio will not decline substantially, and that there likely will be no need for a premium in 2013.

NCUA has now retired all $5.5 billion in Medium Term Notes representing obligations of the failed corporate credit unions. The 2012 assessment of 9.5 basis points was used to fund the final $3.5 billion payment of Medium Term Notes. The primary remaining obligation of the Stabilization Fund is the outstanding $5.1 billion in funds borrowed from the U.S. Treasury. Funds generated from future assessments will be the primary source of repaying funds borrowed from the U.S. Treasury, NCUA said.

The projected 2013 Stabilization Fund assessment of 8 to 11 basis points would generate between $705 million to $969 million.

NCUA projects it will set the actual assessment level in July 2013, with the collection due in October 2013.

 

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.