Friday, July 22, 2011 11:30:00 AM
ALEXANDRIA, Va. - After an agency-wide budget review, the NCUA Board yesterday approved a reduction to its 2011 operating budget of $2 million. The $2 million decrease represents a 1% reduction in the NCUA's 2011 budget, which was set at $225 million late last year. 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 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.
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.
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.
For CUNA's full summary of the NCUA Board meeting, click here. This aspect of the NJCUL site is limited to members only and is password protected. To receive a login, send a request to Marissa Anema at email@example.com.