NCUA Approves Budget Boost, Board Meeting Summary Available

Posted by Marissa Anema Friday, November 18, 2011 11:46:00 AM

ALEXANDRIA, Va. – At its meeting on Thursday, the NCUA Board adopted a 5.1% increase for the 2012 budget, including an increase in the overhead transfer rate from 58.9% to 59.3% and a decrease in the operating fee rate by .90% for federal credit unions. The Board set the 2012 budget at $236.85 million, an increase from the 2011 budget of $225.40 million.

The NCUA Board was also briefed on the 2012 Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment. The range is estimated to be 8-11 basis points. Chairman Matz also announced no 2011 National Credit Union Share Insurance Fund premium, and indicated that while the agency does not anticipate a premium for 2012, it nonetheless is setting a range of 0-6 basis points for a potential premium next year in case greater problems in natural person credit unions materialize.

The NCUA Board increased the Overhead Transfer Rate (OTR) from the current 58.9% to 59.3% for 2012. Under the Federal Credit Union Act, NCUA may transfer funds from the NCUSIF to fund administrative and other expenses related to federal share insurance. NCUA uses the OTR to allocate those expenses.

The Board also approved final rules without any changes to the interim rules on remittance transfers and a technical correction to golden parachute and indemnification rule, as well as approved a community charter request.

CUNA’s full summary of the board meeting is available on the League Web site here.

NCUA’s summary of its meeting is available here.

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