WASHINGTON—Congress wants to know the impact a National Credit Union Share Insurance Fund premium charge could have on credit unions.
House Financial Services Subcommittee on Oversight and Investigations Chairman Sean Duffy (R-Wi) has requested information by Dec. 27 from NCUA Board Chairman Rick Metsger on the effects an NCUSIF charge could have on credit unions’ lending.
Duffy asked if NCUA has done any economic modeling to show how a premium charge could impact credit unions’ lending and operations and what the agency itself was doing to improve its operations in an attempt to prevent charging credit unions a premium.
In its response, NAFCU VP-Legislative Affairs Brad Thaler said, “NAFCU thanks Congressman Duffy for his leadership on this issue. We appreciate his concerns for the health of the credit union industry.”
The NCUA board last month estimated a potential 2017 share insurance premium of three to six basis points. By statute, the agency is required to charge a premium if the National Credit Union Share Insurance Fund’s equity ratio falls below 1.2%. As of Sept. 30, the ratio stood at 1.27%.
NAFCU maintains that no premium charge is necessary and is urging the agency to instead make operational changes to yield more positive results for the fund.