NCUA budget, ‘financial innovation’ proposal slated Dec. 15

Action on a proposed 8.1% increase in the agency’s budget for 2023 (and 10% for 2024) and a proposed “financial innovation” rule for credit unions is slated during the Dec. 15 open meeting of the National Credit Union Administration (NCUA) Board.

Also slated is a board briefing on the 2023 normal operating level (NOL) of the National Credit Union Share Insurance Fund (NCUSIF), which is currently set at 1.33%.

The NCUA agenda shows the proposed rule would focus on loan participations, eligible obligations, and notes of liquidating credit unions. It would revise Parts 701 and 704 (governing federal credit unions and corporate credit unions) of the NCUA rules and regulations.

The NCUA’s proposed budget, released in September and issued for comment, includes plans for total budget hikes of $27.5 million in 2023 and $36.8 million in 2024. Net staffing increases of 25 positions and 22 positions for the respective next two years are proposed.

Under the September proposal, the agency’s operating budget in 2023 would grow 9.6% to $350.8 million; the capital budget would decline 14.1% to $11.2 million; and the NCUSIF administrative budget would drop 21.5% to $4.5 million. In 2024, the agency proposes an operating budget of $388.2 million (up 10.7%), capital budget of $11.2 million (up less than 0.1%), and NCUSIF administrative budget of $4.3 million (down 12.3%).

The NCUA budget is funded by fees paid by federal credit unions (operating fees) and the NCUSIF overhead transfer rate (OTR). In 2023, the NCUA’s documents show, federal credit unions will fund 37.6% of the budget, while the OTR will cover the other 62.4%.

The open board meeting is slated for 10 a.m. Eastern and can be viewed in person and via webcast.

NCUA Board Dec. 15 meeting agenda

NCUA Budget and Supplementary Materials