NCUA Report - December 2011

BOARD ACTIONS (FROM PAGE 3)

NCUSIF and Stabilization Fund: Financial
Conditions Continue Steady Improvement

The NCUSIF equity ratio increased to 1.32 percent during October 2011. This ratio is calculated on an insured share base of $782.4 billion as of June 30, 2011. The equity ratio will be recalculated at year-end based upon insured shares as of Dec. 31.

During October, NCUSIF reserves were reduced by $126.9 million, for a month end reserve balance of $871.6 million. This balance included $86.3 million in reserves for specific natural-person credit unions, and $785.3 million in non-specific reserves.

Net income for October was $136.9 million; cumulative net income for the year is $367.6 million.

Thirteen credit unions have failed thus far in 2011 at a cost to the NCUSIF of $45.3 million.

As of October, 394 federally insured credit unions with assets of $33.9 billion and shares of $30.4 billion had CAMEL code 4 or 5 designations. Additionally, 1,761 CAMEL code 3 credit unions had assets of $139.6 billion and shares of $124.2 billion. Overall, approximately 17 percent of all credit

RULEMAKING CALENDAR

TITLE
REFERENCE
STAGE

Golden Parachute & Indemnification Payments – Technical Correction 750

Remittance Transfers 701

Community Development 701 Revolving Loan Fund Access 705 for Credit Unions 741

Loans in Areas Having Special Flood Hazards; Interagency Questions and Answers 760 Regarding Flood Insurance Net Worth & Equity Ratio Corporate Credit Unions Credit Union Service Organizations Sample Income Data to Meet the Low-Income Definition 701

Accuracy of Advertising & 740
Notice of Insured Status
Corporate Credit Unions
Final Rule
Final Rule
Final Rule

700, et al

704

Notice and request for comment Final Rule Proposed Rule

712 & 741

Proposed Rule Final Rule Final Rule

704

§704.2 & 704.15

§ 704.21

Final Rule
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 eight months, to total
83 percent as of Oct. 31.

The Stabilization Fund total liabilities and net position stood at approximately $5.9 billion at the end of October, about $2.1 billion lower than the end of September. The decline is attributed to the reduction in accounts payable related to the maturity of Medium Term Notes. 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.

Final Remittance Transfer Rule Conforms
NCUA to Dodd-Frank Act

Clarifying that remittance transfers are permissible financial services for FCUs, the Board issued a consumer-oriented final rule (Part 701), implementing the requirements of the Dodd-Frank Act.

The Dodd-Frank Act added a new section to the Electronic Funds Transfer Act creating protections for consumers who, through remittance transfer providers, send money to people