August 24, 2014

Up at NCUA today: Fixed assets, NCUSIF, mid-year budget review

July 31, 2014 – A proposal for an eased fixed-assets rule – one of NAFCU's "Dirty Dozen" goals – plus a National Credit Union Share Insurance Fund quarterly report and mid-year NCUA operating budget are slated for discussion during today's open NCUA Board meeting.

Debbie Matz (Dietsch)

NCUA Board Chairman Debbie Matz announced plans to ease the fixed-assets rule last week during NAFCU's Annual Conference in Las Vegas. She said the agency is looking to remove the requirement for federal credit unions to get NCUA approval or waivers to exceed a 5 percent investment in fixed assets.

Regarding NCUA budgetary matters, NAFCU is continuing to press NCUA to find cost savings in its budget, which rose 6.7 percent to $268.3 million this year, and to be more transparent in its reporting for the NCUSIF, Temporary Corporate Credit Union Stabilization Fund and Central Liquidity Facility.

NAFCU President and CEO Dan Berger, in a letter to Matz this Monday, reiterated the association's concerns about NCUA's budget and transparency in its financial reporting. He urged specifically for more transparency in how funds transferred from the NCUSIF through the overhead transfer rate in 2013 were allocated to the operating budget.

Today's meeting, set for 10 a.m. Eastern, also includes a report on the performance of the NCUA Guaranteed Notes program and a community charter expansion request from Call Federal Credit Union of Richmond, Va.

A closed session addressing share insurance appeals precedes at 9 a.m.