The National Credit Union Administration (NCUA) has reportedly set this year's corporate bailout assessment at 8 basis points, or $700.9 million.
The National Credit Union Administration (NCUA) has reportedly set this year’s corporate bailout assessment at 8 basis points, or $700.9 million.
This year’s assessment, the lowest of the four annual charges set by NCUA, brings to $4.8 billion the amount NCUA has collected from credit unions over the past four years to fund the corporate bailout. It also bring almost $11 billion to cost of the corporate bailout so far, including $5.6 billion of credit unions’ capital erased before NCUA took over and liquidated the five failed corporates: U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU.
Last year's assessment was 9.5 bps or $790 million. NCUA said it will use $650 million of the assessment to repay borrowings from the U.S. Treasury, which is funding the vast majority of the corporate bailout with low-rate federally guaranteed loans.
Credit unions must account for the payment in their third quarter financials. Payment is due in October.
In addition to setting the 2013 Temporary Corporate Credit Union Stabilization Fund assessment at 8 basis points of insured shares as of June 30, the NCUA board also unanimously approved:
Reprogramming NCUA’s 2013 operating budget to produce $2.6 million savings, the largest mid-session reduction since 2004.
Proposing to create a Minority Credit Union Preservation Program, as required by Congress.
Issuing a proposed rule to require electronic filing of Call Reports by federally insured credit unions that will increase the efficiency, timeliness and accuracy of filings.