December 15, 2022

NCUA set to finalize 2023-24 budget today

NCUA headquartersThe NCUA Board is set to finalize the agency’s 2023-24 budget during its meeting today, which begins at 10 a.m. Eastern. NAFCU will review the final budget to see if the agency has heeded the association’s call for cost-saving efforts and provide updates to credit unions once the meeting concludes.

NAFCU Chief Economist and Vice President of Research Curt Long has specifically urged the NCUA to prioritize a hybrid exam model to reduce travel costs and review increased costs for contracted services and specialist examiners. The proposed budget for 2023 totals $367 million, an increase of 8.1 percent from 2022.

Also on today’s agenda is a proposed rule related to financial innovation; the agenda notes it’s related to loan participation, eligible obligations, and notes of liquidating credit unions. Earlier this year, NAFCU urged the agency to eliminate a burdensome requirement that a federally-insured credit union’s (FICU) internal written loan participation policies must establish a limit on the amount of aggregate loan participations that may be purchased by a single borrower, or group of associated borrowers, not to exceed 15 percent of the FICU’s net worth. The association has also asked the agency to make permanent the increase in aggregate loan participations from a single originating lender.

The board will also review the Share Insurance Fund’s (SIF) normal operating level (NOL) for 2023, which was set at 1.33 percent for 2022. NAFCU has consistently requested the NCUA return the NOL to its historic level of 1.3 percent.

A livestream of the meeting will be available on the NCUA website.