The NCUA will ask Congress to rewrite the Federal Credit Union Act so it can establish a risk-based NCUSIF premium system and eliminate the 1.3% equity ratio cap, according to a white paper obtained Monday.
The NCUA determined the current statutory equity ratio between 1.2% and 1.5% is too restrictive.
"The current level of the NCUSIF is not large enough to weather a level of losses experienced during the last recession without exacerbating the economic cycle," the National Credit Union Share Insurance Fund Improvements white paper, dated September 2013, said.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
