OLYMPIA - The Washington State Department of Financial Institutions supports the recent actions taken by the National Credit Union Administration (NCUA) board to protect the corporate credit union industry.
“Today’s announcement shows the NCUA is taking the necessary steps to strengthen the credit union system and protect depositors during these trying times,” DFI Director of Credit Unions Linda Jekel said. "As regulators, DFI's Division of Credit Unions routinely monitors and examines Washington's credit unions to ensure they are safe and sound."
“The actions taken by NCUA will help corporate credit unions and will ultimately benefit all credit union members,” Jekel continued. “State regulators and NCUA are working together to maintain the confidence in the credit union system because credit unions are vital to helping Washington residents with their borrowing and investment needs.”
The NCUA Board approved the following:
- Guarantee uninsured shares at all corporate credit unions through February 2009, and establish a voluntary guarantee program for uninsured shares of all corporate credit union through December 31, 2010;
- Issue a $1 billion capital note to U.S. Central Corporate Federal Credit Union (U.S. Central);
- Issue an Advance Notice of Public Rulemaking (ANPR) on restructuring the corporate credit union system; and
- Declare a premium assessment - to individual credit unions - to restore the National Credit Union Share Insurance Fund (NCUSIF) equity ratio to 1.30 percent, which will be collected in 2009.
“It is important for members of Washington’s credit unions to understand their deposits are insured up to $250,000 by the National Credit Union Share Insurance Fund,” Jekel added. “I encourage all credit union members to learn more about deposit insurance by visiting the NCUA’s Web site at www.ncua.gov.