Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
NCUA still open to assessment ideas says Matz
WASHINGTON (11/24/10)--National Credit Union Administration (NCUA) Chairman Debbie Matz last week said that her agency is open to suggestions on possible ways to address the corporate credit union system’s liquidity needs so that the estimated 2011 corporate stabilization assessment of 20 to 25 basis points (bp) might be reduced. Speaking at the Association of American Credit Union Leagues (AACUL) annual meeting in Dallas, Matz added that the NCUA was “certainly open” to suggestions, and would “at least listen” to see if any suggestions were workable. In ten town hall meetings throughout October, NCUA officials cautioned that corporate stabilization assessments would be higher in 2011 and 2012 due to the need to repay medium-term notes that were issued in 2009 to preserve liquidity in the corporate system. The NCUA last week projected total dual assessments of 20-35 bp for 2011. Increasing losses at natural person credit unions could require a National Credit Union Share Insurance Fund (NCUSIF) assessment ranging from zero to 10 bp; and repaying borrowings triggered by losses at corporate credit unions could require a Temporary Corporate Credit Union Stabilization Fund assessment of 20-25 bp, according to NCUA staff. These assessments could collect up to $2.7 billion in funds. The Credit Union National Association (CUNA) discussed the assessment issue with the NCUA after Thursday’s board meeting. Matz also asked CUNA, credit union leagues, and individual credit unions to comment on proposed limits to corporate credit union membership that were released during last Thursday’s meeting. (See related stories in Nov. 19 edition of News Now.) Matz also discussed the NCUA’s 2011 budget increase during her remarks, saying that the NCUA’s salary increase and corresponding budget increase are due primarily to additional personnel hires needed to complete the agency’s annual examination program and a previously negotiated 6.1% pay raise that is in the current NCUA employee collective bargaining agreement. NCUA managers and others who are not in the bargaining unit are budgeted to receive an average raise of 3%. The NCUA’s budget will increase by $25 million in 2011, with most of that increase going to cover the addition of 78 staff positions and a pay raise that for some employees could go as high as 8% after factoring in “locality pay” adjustments that are mandated across the federal government. CUNA President/CEO Bill Cheney last week questioned the NCUA’s budgetary increase, saying that CUNA was concerned that the NCUA was "asking for more resources from credit unions at a time when so many credit unions are feeling the pain of an obstinate recession."


RSS





print
News Now LiveWire
Final field-of-membership rule tops April 30 NCUA agenda http://t.co/gFIhRhUCts
18 hours ago
.@CUNA's @Nussle speaks to @VonnieQuinn about #StoptheDataBreaches and reg. relief. http://t.co/TMTubG9Afk
20 hours ago
RT @NCUFoundation: .The Foundation's @hylandhighway with @NatlJumpStart President/CEO Laura Levine at #FLHillDay2015 today: http://t.co/ep5…
23 hours ago
Seriously underwater homes rise, new-home sales tumble News Now: http://t.co/2LzWTkqnES
23 hours ago
#NewsNow Cornerstone Foundation awards $71K in grants http://t.co/Y6D8K9rwWv
1 day ago