The NCUA board ruled on Thursday, during its open meeting, that it will not charge a Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment in 2014. Also, the National Credit Union Share Insurance Fund assessment for 2014 will be between zero and five basis points (bp).
CUNA and the League have been asking the NCUA to set the range for the TCCUSF assessment as narrow as possible, starting with zero bp. Credit unions have paid $4.8 billion in TCCUSF assessments since the fund was established.
The NCUA also will receive $1.4 billion through a settlement with JP Morgan announced this week. The settlement funds "will greatly benefit credit unions" and "will enable NCUA to greatly reduce the assessments that all credit unions have to pay," NCUA Chairman Debbie Matz said this week.
Additionally, the NCUA board adopted a final rule addressing credit union service organization (CUSO) supervision at its Thursday open board meeting. The final rule was revised from the agency's earlier proposal. CUNA says that it still has some concerns about the authority of the agency to exercise direct authority over CUSOs.
Under the proposal released in 2011, CUSOs and their subsidiaries would be required to directly file their financial statements with the NCUA, and to forward those reports to state supervisors. The final keeps those controversial provisions. However, the NCUA noted that the final rule is more limited in scope than the proposed rule: The final rule is targeted to CUSOs that engage in high-risk or complex activities such as credit lending, information technology and custody, safekeeping and investment management. The final rule will become effective on June 30. A registry for CUSOs to file their documents with the NCUA will be finalized in late 2015.
Among CUNA's concerns is that the Federal Credit Union Act does not confer authority over CUSOs to the federal credit union regulator except through the oversight of credit unions. CUNA believes that the NCUA should work with natural person credit unions that obtain services from the CUSOs to provide the financial information on CUSOs the agency needs. The agency has said that this method is inefficient and restricts its ability to conduct offsite monitoring and evaluate systemic risks posed by CUSOs.
Here is an NCUA letter that was sent to all credit unions. Read more on the CUSA rule from CUNA on its website. Here is a summary of the entire board meeting.