Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Approved NCUA budget has 12.1 increase for 2009
ALEXANDRIA, Va. (11/21/08)—The National Credit Union Administration (NCUA) Board during its monthly November meeting approved the final fiscal year 2009 budget and the initial year 2010 budget. The board set the 2009 budget at $177.86 million--a 12.1% increase from the 2008—but about $5 million less than the agency said it would need at its annual budget briefing last month.
Click to view larger imageClick for larger view
The shift in part reflects a significant downward revision in the number of new examiners the agency thinks it will need. However, 2009’s travel budget increased by 34%, which NCUA staff partially attributed to the revised examination cycle. For the fiscal year 2010, NCUA approved a tentative budget of $189.97 million--a 6.8% increase over the requested amount for 2009. CUNA’s Examination and Supervision Subcommittee will continue to monitor the agency’s budget, especially given the current economic crisis, according to CUNA Deputy General Counsel Mary Dunn. The NCUA Board yesterday also approved an increase in the 2009 operating fee scale, which the agency uses to determine the operating fee assessed to federal credit unions. The changes increase the operating fee scale by 6.77%. The operating fees for federal credit unions, which will be assessed based on assets as of Dec. 31, 2008, will be due to NCUA no later than April 15, 2009. In addition, the board during Thursday’s meeting increased the Overhead Transfer Rate (OTR) from the current 52% to 53.8% for 2009. Under the Federal Credit Union Act, NCUA may transfer funds from the National Credit Union Share Insurance Fund (NCUSIF) to fund administrative and other expenses related to federal share insurance. NCUA uses the OTR to allocate those expenses. According to the agency, the 2009 OTR reflects the results of its most recent examiner survey that it says indicates examiners are spending a larger amount of their time on insurance related issues--such as financial analysis, evaluating risks, and assessing efforts to protect earnings and net worth. NCUA staff indicated that the OTR increase attributable to insurance related issues is a trend likely to continue. Meanwhile, NCUA staff reported that NCUSIF’s equity level is now at 1.27% and is expected to be at that level at the end of this year--precluding the possibility of an NCUSIF dividend to federally insured credit unions. Agency staff noted that its 1.27% estimate is .01% below October’s projection. There are currently 246 CAMEL 4 and 5 credit unions, up from 211 at the end of last year. The total insurance loss expense for 2008 is estimated to be approximately $176.5 million.


RSS print
News Now LiveWire
Expanded ATM services at branches attractive to members: @CFIGroup. See #NewsNow Friday
2 hours ago
#FinCEN imposes civil money penalty against NJ's BPI money services co. for #BSA violations http://t.co/WnDzOcxdOZ
5 hours ago
.@ABCULCUs give hat tip to America's #100MM #creditunion milestone http://t.co/q8yo6Lx3LM
5 hours ago
The @CFPB has announced new Credit Union Advisory Council members, as well as other senior leaders, advisory board and council members.
6 hours ago
GDP expanded 4.2% on an annualized basis in 2Q according to Bureau of Economic Analysis
7 hours ago