Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NCUA still open to assessment ideas says Matz
WASHINGTON (11/24/10)--National Credit Union Administration (NCUA) Chairman Debbie Matz last week said that her agency is open to suggestions on possible ways to address the corporate credit union system’s liquidity needs so that the estimated 2011 corporate stabilization assessment of 20 to 25 basis points (bp) might be reduced. Speaking at the Association of American Credit Union Leagues (AACUL) annual meeting in Dallas, Matz added that the NCUA was “certainly open” to suggestions, and would “at least listen” to see if any suggestions were workable. In ten town hall meetings throughout October, NCUA officials cautioned that corporate stabilization assessments would be higher in 2011 and 2012 due to the need to repay medium-term notes that were issued in 2009 to preserve liquidity in the corporate system. The NCUA last week projected total dual assessments of 20-35 bp for 2011. Increasing losses at natural person credit unions could require a National Credit Union Share Insurance Fund (NCUSIF) assessment ranging from zero to 10 bp; and repaying borrowings triggered by losses at corporate credit unions could require a Temporary Corporate Credit Union Stabilization Fund assessment of 20-25 bp, according to NCUA staff. These assessments could collect up to $2.7 billion in funds. The Credit Union National Association (CUNA) discussed the assessment issue with the NCUA after Thursday’s board meeting. Matz also asked CUNA, credit union leagues, and individual credit unions to comment on proposed limits to corporate credit union membership that were released during last Thursday’s meeting. (See related stories in Nov. 19 edition of News Now.) Matz also discussed the NCUA’s 2011 budget increase during her remarks, saying that the NCUA’s salary increase and corresponding budget increase are due primarily to additional personnel hires needed to complete the agency’s annual examination program and a previously negotiated 6.1% pay raise that is in the current NCUA employee collective bargaining agreement. NCUA managers and others who are not in the bargaining unit are budgeted to receive an average raise of 3%. The NCUA’s budget will increase by $25 million in 2011, with most of that increase going to cover the addition of 78 staff positions and a pay raise that for some employees could go as high as 8% after factoring in “locality pay” adjustments that are mandated across the federal government. CUNA President/CEO Bill Cheney last week questioned the NCUA’s budgetary increase, saying that CUNA was concerned that the NCUA was "asking for more resources from credit unions at a time when so many credit unions are feeling the pain of an obstinate recession."


RSS print
News Now LiveWire
.@TheNCUA open board meeting starts at 10 a.m. ET tomorrow. It is board member J. Mark McWatters' first. Watch @NewsNowLiveWire
11 hours ago
.@CFPB is proposing to oversee larger nonbank auto finance companies for the first time at the federal level.
12 hours ago
.@CUNA's Bill Hampel moderates a discussion on the future of credit unions in the post-100 million member world. http://t.co/kcXykiRQVn
14 hours ago
#Breaking: QE likely to end next month, @federalreserve says #NewsNow #Market http://t.co/u7Fb5l5fwM
15 hours ago
.@Experian study confirms that building a credit history is beneficial to financial marginalized communities. 64M are "credit invisibles"
15 hours ago