ALEXANDRIA, Va. – NCUA has set this year’s corporate credit union assessment at 9.5 basis points, a total of $790.53 million.
The assessment, which will be voted by the NCUA Board later this morning, will be accrued by all federally insured credit unions for the third quarter and payment will be due by October 9.
Last year’s assessment was 25 bps, or $2 billion.
This year’s assessment makes a total of $4.1 billion charged by NCUA over the past four years to pay for the corporate resolution and brings the cost of the five corporate failures to $10 billion. That includes $5.6 billion in capital erased by the failures, a transfer of $280 million of National CU Share Insurance Fund reserves to the Temporary Corporate CU Stabilization Fund last winter, and $175 million of recoveries by NCUA.
As part of the resolution, NCUA said this morning it will borrow up to $2.5 billion from the U.S. Treasury to pay off some of the $28 billion in NCUA Guaranteed Notes that are were issued under the corporate resolution program.
NCUA projects the final cost of the corporate failures could be as much as $20.7 billion.