Credit unions pay for the privilege of regulation through operating fees to the National Credit Union Administration (NCUA). With that in mind, those in the industry need to remain vigilant about NCUA's budget allocations and increases to make sure credit unions are not paying increased fees due to non-supervisory activities, ensuring the agency does not engage in wasteful spending.
To that end, the League embraced the opportunity to comment on NCUA's Staff Draft 2021-2022 Budget. The League praised NCUA for decreasing its overall budget for 2021 and for reducing the operating and capital budgets, specifically. This development is the logical result of the agency's reduced spending due to the COVID-19 pandemic. Additionally, although the League stressed that it is pleased with the budget decreases, NCUA should continue to look for and eliminate its budget inefficiencies. Such decreases should not be limited to times of crisis. The League also stressed the importance of the budget remaining segregated from the appropriations process.With Kyle Hauptman now confirmed to its board of directors, the NCUA is poised to pass the budget at its December board meetings.
Read the League's comment letter here and contact League Regulatory Counsel Chris Noble for any questions.