The bill, which was passed by unanimous consent by both the House and Senate last month, gives the agency the power to assess credit unions a premium first, without incurring borrowing costs. Previously, the agency had to borrow the money from the Treasury Department to repay the fund and then assess credit unions. Under the new law, the agency could assess credit unions a premium first, without incurring borrowing costs.
The credit union must pay the premium within 60 days and the measure requires the agency to “take into consideration any potential impact on credit union earnings that such an assessment may have.”
The bill would also allow credit unions that receive assistance from the NCUA under section 208 of the Federal Credit Union Act to be counted as net worth. The agency provides such assistance to facilitate a merger if it would reduce the loss to the NCUSIF.
It also clarifies that the definition of the NCUSIF’s equity ratio is based on the fund’s unconsolidated financial statements. NCUA Chairman Debbie Matz requested those changes during her testimony before the Senate Banking Committee earlier this month.
The bill also instructs the Government Accountability Office to study the NCUA’s oversight of corporate credit unions and the effectiveness of how the agency implemented prompt corrective action is due within a year of the measure’s enactment.
Within six months of receiving the report, the Financial Stability Oversight Council (of which Matz is a member) must submit a report to the House and Senate on actions taken and any recommendations issued to the NCUA.
The bill was one of 35 bills that Obama signed Monday, his first day back from vacation.