Newsroom
Mesack urges fiscal responsibility by NCUA in new op-ed
In an op-ed for CU Insight, NAFCU Senior Vice President of Government Affairs Greg Mesack called on the NCUA to be more fiscally responsible and ensure it “adheres to the same principles as the industry it oversees.” The op-ed comes in response to the agency’s final 2024 budget, which will be 7 percent higher than this year and include an operating fee increase of roughly 16 percent.
Mesack praised the NCUA’s transparent budget process but remarked that “is hardly willing to heed the feedback it gets on its budget proposals.” He noted that NAFCU is “realistic” and aware that proper regulation is needed to ensure the safety and soundness of the credit union industry.
“However, the NCUA has gone beyond that and continues to increase its scope and scale, raising its budget by nearly 10 percent year after year,” added Mesack. “These budget increases are unsustainable. Credit union margins are tightening. The federal funds rate has increased about five percent in the past two years. With the rates increasing, people are more reluctant to take out loans and delinquencies are rising.”
He urged the NCUA to revisit its budget increases and ensure that money remains with credit unions.
“Credit unions are safe, secure, and reliable. They work hard to serve their members, communities, and small businesses, but the NCUA is limiting that great work. The agency must be financially responsible by focusing on essential functions and the safety and soundness of the credit union industry – not increasing its authority while leaving credit unions and their nearly 140 million members shortchanged,” concluded Mesack.