NCUA Reduces Budget, Establishes Stabilization Fund Assessments

The National Credit Union Administration (NCUA) board met Thursday morning and reduced its 2013 operating budget by $2.5 million, bringing the regulator’s total budget to $248,811,780.

Employee base salaries are frozen in voluntary compliance with the federal pay freeze.

In other action, the board:

  • Set the 2013 Temporary Corporate Credit Union Stabilization Fund assessment at 8.0 basis points of insured shares as of June 30.
  • Proposed to create a Minority Credit Union Preservation Program, as required by Congress.
  • Issued a proposed rule to require electronic filing of Call Reports by federally insured credit unions, in a move designed to increase the efficiency, timeliness and accuracy of filings.
  • Expanded the community charter of San Francisco Federal Credit Union to serve nearly 740,000 potential new members in San Mateo County.

Regarding the 2013 Stabilization Fund Assessment, the 8.0 basis points level is 1.5 basis points lower than the 2012 assessment, according to a news release issued by the NCUA Thursday.

“As the nation’s economy further strengthens, the credit union industry is growing stronger,” NCUA Chair Debbie Matz said. “Years of hard work by the industry and NCUA are continuing to pay off as we resolve a corporate crisis that could have brought down the entire credit union system. We have steered a careful course through treacherous waters, and that course is taking us closer to the day when this burden can be lifted from the industry’s shoulders.”

With the 2013 assessment, federally insured credit unions will have paid $4.8 billion to continue strengthening the share insurance fund, following the impact of some of the failed corporate credit unions. The 2013 assessment will raise an estimated $700.9 million. The NCUA will invoice federally insured credit unions and the assessments will be due in October.

 

Questions? Contact Lynn Heider: 503.350.2225, lheider@nwcua.org.

Posted in Federal, NCUA.