BOARD ACTIONS (FROM PAGE 3)
unions, thereby enhancing the provision of financial services
for low-income households.
The rule improves definitions, clarifies eligibility requirements,
adds examples of how credit unions can use loans from this
fund, and significantly simplifies the current rule. Most
significantly, the rule removes the requirement that NCUA
charge an interest rate between 1 and 3 percent APRs. The
Board intends this change to provide flexibility to charge a
below-market APR no matter how low or how high the
prevailing rates move in the future. The final rule also better
details the application and award processes, and post-award
The final rule will become effective Dec. 2, 30 days after
publication in the Federal Register.
NCUSIF and Stabilization Fund: Financial
Conditions Steadily Improving
The NCUSIF equity ratio stood at 1.31 percent for Sept. 30,
2011. This ratio is calculated on an insured share base of $782.4
billion at June 30, 2011. The equity ratio will be recalculated at
year end based upon the insured share base as of Dec. 31.
The NCUSIF ending reserve balance was $998.5 million.
This figure included $22.5 million in reserves for specific
natural-person credit unions, and $976.0 million in nonspecific reserves. Insurance loss expense was $217,000
Gross income for September was $18.4 million, with
expenses of $14.8 million, resulting in net income of $3.6
million. Cumulative net income for the year is $230.7 million.
Thirteen credit unions have failed thus far in 2011 at a cost
to the NCUSIF of $45.8 million.
As of September, 384 federally insured credit unions with
assets of $33.9 billion and shares of $30.4 billion had
CAMEL code 4 or 5 designations. Additionally, 1,777
CAMEL code 3 credit unions had assets of $146.1 billion and
shares of $129.8 billion.
Overall, approximately 18 percent of all credit union assets
were in CAMEL code 3, 4 or 5 institutions. The percentage
of assets in CAMEL code 1 and 2 credit unions has increased
slightly in each of the past seven months, topping 82 percent
as of Sept. 30.
The Stabilization Fund recorded revenue of $1.96 billion
from the special premium assessment in September. Total
liabilities and net position stood at approximately $8 billion
at the end of September, about $2 billion higher than the end
of August. The Stabilization Fund has $3.5 billion in
outstanding U.S. Treasury borrowings.
Financial data reported in 2011 for both the NCUSIF and the
Stabilization Fund are preliminary and unaudited.
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