WASHINGTON (7/29/13)--In this week's edition of The Cheney Report, Credit Union National Association President/CEO Bill Cheney speaks up on two recent National Credit Union Administration developments: The agency's Thursday release of its mid-year budget adjustment and Temporary Corporate Credit Union Stabilization Fund assessment, and the ongoing efforts to move forward with a derivatives rule.
The 2013 TCCUSF assessment will be eight basis points, and Cheney says this decision "is welcome news for all credit unions." However, he adds, CUNA also believes that with the strong performance of corporate legacy assets and positive housing and economic trends "this should be the end of corporate assessments.
"We have consistently advocated keeping the assessments as low as possible--if not eliminate them outright--to ease the costs to credit unions," Cheney says.
Reducing expenses wherever possible is another way that the NCUA could limit credit union costs, and the agency did just that last week, reducing its 2013 budget by $2.6 million. This adjustment is a sign that the NCUA has listened to CUNA's suggestion that it "hold the line on or reduce expenses" and hold itself to "the same standards of containing costs that credit unions are held to by their examiners." However, Cheney notes, CUNA thinks "more can be done in the next year, and will continue to push our case."
In the latest Cheney Report, the CUNA CEO also states that the "pay for play" aspect of the NCUA's derivatives proposal "is a slippery slope.
"Make no mistake, CUNA strongly opposes fees for derivatives authority or for any financial activity allowed credit unions by law," Cheney writes.
"While we support the agency's efforts to move forward with a derivatives rule, the fee proposal is a non-starter. In our view, NCUA can develop the expertise necessary to enable it to properly regulate the evolving business model of a credit union without imposing extra charges on credit unions," he adds.
Use the resource link below to access the full Cheney Report.