NCUSIF Loss Reserve Doesn’t Reflect Actual Losses
Chip Filson of Callahan & Associates skewers the NCUA’s accounting practices for loan losses for the NCUSIF, the largest single expense for the share insurance fund. Filson demonstrates that the loss provisions established by the NCUA for the past six years bear no relationship to actual losses, which raises the question of whether the agency should have authority over an individual credit union’s reserving decisions as stated in the proposed risk-based capital rule. [4/18]
