November NCUA Board Meeting
Written by Michael Coleman, Regulatory Compliance Counsel
Yesterday at the November NCUA Board Meeting, the two member NCUA Board approved three items:
- NCUA's 2013 operating budget. The NCUA Board approved a budget of $251,387,091, which is a 6.1 percent  ($14,532,305) increase over the agencyâÂÂs 2012 budget.Â
- An Overhead Transfer Rate (OTR)Â for 2013 of 59.1 percent, a decrease from the 2012 OTR of 59.3 percent.
- The 2013 federal credit union operating fee scale of 0.24 percent, and an elimination of operating fees for FCUs with assets less than $1 million.
NCUA's Board Action Bulletin provides a summary of these actions. The most contentious action taken was undoubtedly the 6.1 percent increase in NCUA's operating budget. NAFCU has serious concerns with this increase in the budget and has expressed these concerns to NCUA, you can read more about this issue in the NAFCU Today.Â
The Board Action Bulletin quotes NCUA Chairman Matz concerning the approved 2013 NCUA budget:Â
âÂÂ'This is a realistic, responsible and prudent budget. ItâÂÂs a sound investment for credit unions to protect their bottom lines and the Share Insurance Fund from any industry losses,' Chairman Matz said. 'As the industryâÂÂs assets grow and credit unions engage in increasingly complex activities, NCUA must keep pace. We held the line in this budget with no increase in authorized staffing levels from 2012, and we reaffirmed our commitment to keeping costs under control by engaging in zero-based budgeting where every projected expense is justified.'âÂÂ
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Also at the meeting, NCUA briefed the NCUA Board on an estimated range for National Credit Union Share Insurance Fund (NCUSIF) premiums and Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) assessments in 2013. For the NCUSIF, the estimated range was 0-5 basis points. For the Stabilization Fund the range was 8-11 basis points. For more details see NCUA's Board Action Bulletin.
Have a great weekend!