Corporate Stabilization assessment range drops $900 million
04/01/2013 10:45 am
Total projected assessments associated with the Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) declined $900 million at the upper end between July 2012 and December 2012. Total future remaining assessments are now projected to range between $1.6 billion and $3.9 billion. Six months ago the total range was $1.9 billion to $4.8 billion.
“According to the latest forecast, the top end of the range of total Stabilization Fund assessments declined by $900 million during the last six months of 2012—which is very good news,” NCUA Board Chairman Debbie Matz said. “The decline reflects an improving economy and NCUA’s continuing efforts to effectively manage losses from the corporate failures to reduce future credit union assessments.”
In November 2012, the board announced that the assessment range for 2013 would be between 8 basis points and 11 basis points of insured shares. That range has not changed. The board will vote on the 2013 assessment amount at an open Board meeting this summer.
Since the Stabilization Fund was created in 2009, credit unions have paid $4.1 billion in assessments. Although the Stabilization Fund will expire in 2021, assessments may end sooner.