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Reserves for NCUSIF Losses Rose in 2017 "Credit News 24"

Reserves to cover potential losses to the National Credit Union Share Insurance Fund (NCUSIF) rose in 2017, according to the National Credit Union Administration's Office of the Inspector General (IG).

According to audited financial statement for the NCUSIF, "[t]he NCUSIF ended 2017 with Insurance and Guarantee Program Liabilities of $196.6 million to cover potential losses as compared with $164.9 million for the previous year-end, an increase of $31.7 million." Year-end reserves were up $14 million from $182.6 million as of November 30, 2017.

Reserves were divided into $2.9 million in specific reserves. Specific reserves are identified for those credit unions where failure is imminent and where additional information is available to make reasonable estimate of losses. General reserves were $193.7 million.

However, the audited financial statement notes that estimated losses from conserved Melrose Credit Union were part of the general reserve methodology. The IG goes on to state that "the conservatorship [of Melrose Credit Union] is a distinct and subsequent action from the determination of year-end general reserves. Actual losses could vary and may be materially different from the estimated losses recognized as of December 31, 2017."

Read the audited NCUSIF statement.

Title : Reserves for NCUSIF Losses Rose in 2017 "Credit News 24"
link : Reserves for NCUSIF Losses Rose in 2017 "Credit News 24"