WASHINGTON—NCUA has the opportunity to further reduce its “footprint,” according to comments filed by CUNA on the agency’s NCUA’s proposed 2021 budget. That budget will be voted on by the NCUA board later this week.
The comment letter largely echoes comments made by Mike Schenk, who addressed the board on behalf of CUNA during NCUA’s recent 2021/22 budget briefing, as CUToday.info reported here.
NCUA’s proposed budget reflects a 0.1% decline from the previous year’s budget, largely due to cost savings resulting from examiners conducting virtual exams as the result of the pandemic. The proposed 2022 budget reflects a proposed budget increase.
“We believe there is immense capacity for NCUA to reduce its footprint, right-size the organization and come out of the resulting transition as a nimble, stronger, more efficient and more effective regulator,” the letter adds.
Other points raised by CUNA in its letter:
- CUNA said it is concerned over any expansion of consumer protection examination activity, as it believes examinations should stay close to NCUA’s mission to ensure the safety and soundness of the credit union system. NCUA Board Member Todd Harper has repeatedly called for increased oversight of consumer protection laws.
- CUNA called on NCUA to “resist temptations” to pursue legislation that transforms the National Credit Union Share Insurance Fund into a “bank-like entity,” as well as to commit to reduce the Normal Operating Level to a level closer to its 1.30% historic norm
- CUNA further urged NCUA to view the pandemic as a reference point for additional meaningful field of membership reform