NCUA assessments in 2011 will likely be 20-35 basis points
11/19/2010 08:27 am
The NCUA announced after its Nov. 18 board meeting, that credit unions should expect a 20-35 basis points worth of additional assessments iin 2011. The breakdown of the assessments will be to shore up the NCUSIF will likely be between 0 basis points and 10 basis points. For some perspective, the premium this year was 13.4 basis points.
The assessment to repay part of the Treasury Department’s loan to the Temporary Corporate Credit Union Stabilization Fund will likely be between 20 and 25 basis points. Again for perspective, credit unions were asked this year to pay 12.4 basis points.
The assessments are expected to cost between $1.5 and $2.7 billion in 2011. The NCUSIF premium is based on variables that include insured share growth, investment income, insurance loss expense and the NCUSIF equity level. The Stabilization Fund considers borrowed funds, cash flows and affordability. The actual assessment amount will most likely be announced in the second quarter next year.