Overview
The NCUSIF equity ratio is a general measure of the health of the fund and is calculated as the sum of federally-insured credit unions’ (FICU) capital contribution of one percent of their insured shares and the fund’s retained earnings, divided by total insured shares. Due to NCUA's projected decline in the NCUA Credit Union Share Insurance Fund (NCUSIF) equity ratio, agency staff has recommended a premium charge to credit unions in 2017 of three to six basis points. The premium charge would be in an effort to return the equity ratio to the normal operating level of 1.3 percent from its 2017 projections of 1.24 to 1.27 percent.
It's important to note that none of NCUA's projections have indicated that the equity ratio would fall below the statutory minimum of 1.2 percent in 2017.
NAFCU's analysis (shared with NCUA in August 2016) revealed that under base-level and optimistic predictions, there is no need for a premium charge in 2017. It was only under a scenario of dire economic conditions mirroring The Great Recession—an extremely low-probability event—did the modeling show the equity ratio falling to the statutory floor.
View details of our latest NCUSIF analysis and forecast
*The Emergency Economic Stabilization Act of 2008 increased the amount of insurance coverage on all accounts up to $250k.