The NCUA board of directors held its November meeting yesterday and approved two items: budgets for 2019-2020 to fund the agency’s activities and strategic priorities, and a proposed rule to update fidelity bond requirements for corporate and natural-person credit unions, as part of the agency’s regulatory reform agenda.
The agency’s combined operating, capital and Share Insurance Fund administrative budgets for 2019 will be $334.8 million, a 1.1 percent increase from the 2019 funding levels approved by the board at its November 2017 meeting. The combined budgets for 2020 will be $343.9 million, a 2.7 percent increase from 2019.
The 2019 overhead transfer rate will be 60.5 percent, and the operating fee will increase by an average of 2 percent for natural-person credit unions with assets of more than $1 million. Detailed information on the overhead transfer rate and operating fee is available in the 2019-2020 Budget Justification.
Additionally, the board reviewed the National Credit Union Share Insurance Fund, which posted net income of $93.5 million in the third quarter of 2018, primarily due to the decrease in the provision for insurance losses.
The board also unanimously approved proposed amendments to fidelity bond requirements. The proposed rule is intended to:
- strengthen oversight of fidelity bond coverage by a credit union’s board of directors;
- ensure there is adequate time to discover and file claims following a credit union’s liquidation;
- formalize the Office of General Counsel’s 2017 legal opinion permitting a natural-person credit union to extend bond coverage to certain credit union organizations; and
- clarify the documents subject to the NCUA board’s approval and require all bond forms receive approval every 10 years.
For more information on Thursday’s board meeting, visit NCUA’s website.