The NCUA board on Thursday approved the merger of the agency's corporate stabilization fund with its Share Insurance Fund.
At the same meeting, the board approved boosting the agency's Normal Operating Level from 1.30% to 1.39%—a move that was dictated, in part, by the merger of the funds.
Under federal law, the stabilization fund has been used to provide the agency with the ability to mitigate costs from stabilizing the corporate credit union system.
The merger is likely to result in an initial Share Insurance Fund distribution to federally insured credit unions of between $600 and $800 million. The stabilization fund had been scheduled to close in 2021.
The agency had solicited comments on the proposals and they generated some controversy.
Many credit unions said the increase in the NOL is not needed.
And credit union trade groups have split on closing the stabilization fund. CUNA has endorsed the proposal, while NAFCU has said that additional research is needed before the merger takes place.
Rep. Sean Duffy (R-Wis.) had asked the agency to delay the decisions until Congress can examine the issues.
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