Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
CUNA NCUA budget reduction moves in right direction
ALEXANDRIA, Va. (7/22/11)—The National Credit Union Administration’s (NCUA) decision to reduce its 2011 operating budget by $2 million is “a step in the right direction,” the Credit Union National Association (CUNA) said following the agency’s Thursday open board meeting. The $2 million decrease represents a 1% reduction in the NCUA’s 2011
Click to view larger image After what staff called a thorough agency-wide budget review, the NCUA approved a plan to reduce its operating budget for the remainder of 2011 by $2 million. The savings will translate into excess cash, which the NCUA says it will use offset budget requirements for 2012. (CUNA Photo)
budget, which was set at $225 million late last year. Even with the reduction, CUNA noted that the NCUA’s 2011 budget is still $23 million more than the agency spent in 2010. The budget reduction is the result of adjustments to the employee pay and benefit budget, administrative and contracting costs, travel, and other standard business expenses. The agency has added five new full-time employees this year, with two of them serving as regional lending specialists to assist with risk assessment and member business loans in the NCUA’s Region II. Noting that more can still be done, CUNA President/CEO Bill Cheney encouraged the agency to "continue a close review of its operations and look for other potential areas where expenses can be cut without detracting from its mission of safety and soundness as it develops its 2012 budget." The agency addressed other issues during the meeting, with the board unanimously agreeing to borrow $4 billion from the U.S. Treasury for its Temporary Corporate Credit Union Stabilization Fund (TCCUSF). The borrowed funds will be used to retire Asset Management Estate promissory notes to the bridge corporates and to pay off any expenses related to the winding down of those bridge corporates. The $4 billion is out of the $5.5 billion NCUA plans to borrow from the Treasury for the TCCUSF. The agency added that the National Credit Union Share Insurance Fund held a $1.2 billion reserve balance and showed a 1.28% equity ratio in June. NCUA staff reported that 19% of total credit union assets are held in CAMEL code 3, 4 and 5 credit unions, and added that the total number of CAMEL code 3 credit unions decreased by 16 between May and June. The total percentage of shares held in CAMEL Code 3 and CAMEL Code 4/5 credit unions also declined, dropping nearly 1 percentage point and .24 percentage points, respectively. Corporate capital calculation rules were also amended during the meeting. The NCUA moved to aid corporates that are shedding assets from their businesses by allowing them to choose to “reset the clock” on their 12-month moving averages for assets under both the Moving Daily Average Net Assets and the Moving Monthly Average Net Risk-Weighted Assets calculations. For more on the NCUA meeting, use the resource link.
Other Resources

RSS





print
News Now LiveWire
Watching #SuperBowlXLIX this Sunday? Look for regional #creditunion #commercials @CltMetroCU @BECU @golden1cu #Seahawks #Patriots
13 hours ago
Philadelphia's American Bakery Workers FCU liquidated by @TheNCUA; @trumarkonline assumes shares
13 hours ago
More branch shutterings by @Citi: 4th-largest bank to close 10% of #Chicago area branches HT @CrainsChicago http://t.co/2vAvgucLY5
14 hours ago
56% struggle with subprime credit scores says @cfed survey HT @washingtonpost http://t.co/RHmMvuhNtw
15 hours ago
How to use social media for crisis communications Feb. 10 webinar from @SBAgov, @AgilityRecovery http://t.co/d16t8RHr7n
15 hours ago