Board to decide on merging funds, distributions

Adoption of a final rule to merge the federal credit union savings insurance fund with a fund set up to stabilize “corporate” credit unions in the wake of the financial crisis will be considered by the NCUA Board during its open meeting next week in Alexandria, Va.

If the board adopts the rule as proposed, federally insured credit unions across the country could see a distribution to them of between $600 million to $800 million early in 2018. The rule, as proposed, would also raise the fund’s equity ratio above the current “normal operating level” of 1.33% to a proposed 1.39%.

Both provisions of the proposal have raised considerable interest within the credit union industry: as of this week, more than 600 comment letters had been filed by credit unions, industry trade groups, other organizations and individuals.

Also on the agenda for the Sept. 28 meeting:

  • A proposed rule on accuracy of advertising and notice of insured status by federally insured credit unions;
  • A quarterly report on the condition of the “corporate” fund;
  • A review of the agency’s 2018-22 strategic plan.

NCUA Board meeting/agenda, location, time