Spending plans that would raise the federal credit union regulatory agency’s total budget by 4.3% in 2019 and 2.7% in 2020 are scheduled for final consideration during the agency board’s Nov. 15 open meeting.
The draft budgets for the National Credit Union Administration (NCUA), released in September and discussed during a public briefing Oct. 15, show the agency’s total budget growing from $320.9 million in 2018 to approximately $334.8 million in 2019 and $343.9 million in 2020. These figures represent combined totals of the operating budget, capital budget, and share insurance fund administrative budget.
The proposed operating budget – supported with operating fees paid by federally chartered credit unions and an “overhead transfer rate” paid by the National Credit Union Share Insurance Fund (NCUSIF) – increases from $298.1 million this year to $304.4 million in 2019, rising 2.1%. In 2020, it is estimated to rise again to $316.2 million, an increase of 3.9%.
In other action, the board is scheduled to consider a proposed rule on fidelity bonds (Parts 704 and 713 of the agency’s rules). According to the federal unified agenda of regulatory and deregulatory actions, the agency wants to to modernize its regulation on fidelity bond coverage for federal credit unions. The proposed changes, the agency said. will bring the regulation in line with current practices by federal credit unions and bond issuers.
Also slated is a quarterly report on the NCUSIF.