NCUA Approves 5.1 Percent Increase for 2012 Operating Budget, 53.9 Percent OTR and Estimates 2012 Premiums

Nov. 17, 2011 - The National Credit Union Administration (NCUA) Board approved its fiscal year 2012 budget during its monthly November meeting.

The NCUA Board approved a budget of $237 million for 2012 equating to an increase of 5.1 percent over the 2011 budget. Over the last three years, the NCUA budget increased between 12-13 percent each year as it increased examiner staff.

The 2012 budget increase includes 33 new positions, 26 of which will be hires for the examination program specifically specialists in lending, capital markets, information systems, supervision and troubled institutions.

The Overhead Transfer Rate (OTR) increased from 58.9 percent in 2011 to 59.3 percent for 2012. The agency reported an increased number of examiner hours for federally insured state-chartered credit unions. “The increase in examiner hours for FISCUs is presumably a reflection of NCUA’s newly implemented program to examine all FISCUs with more than $250 million in assets,” said NASCUS President and CEO Mary Martha Fortney. “NASCUS continues to work with NCUA to ensure that the OTR is fair and equitable to all invested parties.”

The federal credit union operating fee decreased .09 percent for 2012. The NCUA Board also announced that credit unions should budget for a range of 8-11 basis points for the 2012 corporate stabilization fund assessment and 0-6 basis points for a possible insurance fund assessment. To date, NCUA has received $165.5 in settlement proceeds from Citigroup and Deutsche Bank; there are other cases still pending. Funds received from settlements are being applied to the Stabilization Fund debt.

To read more about the NCUA 2012 budget, follow this link.

Also at the Nov. 17, 2011 NCUA Board meeting, a Final Rule was approved – Section 701.30 of NCUA’s Rules and Regulations regarding Remittance Transfers. The final rule amends the Federal Credit Union Act to implement part of the Dodd-Frank Act identifying remittance transfers as permissible financial services for federal credit unions. In addition, technical corrections were approved for Final Rule – Part 750, Golden Parachute and Indemnification Payments.