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.

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Regulatory & Compliance