The NCUA board of directors approved two items at the final meeting of 2022 on Thursday:
- the agency budget for 2023 and 2024; and
- a proposed rule on financial innovation that would amend the NCUA’s regulations on eligible obligations and loan participations.
2023, 2024 budgets
The board unanimously approved the agency’s Operating, Capital and National Credit Union Share Insurance Fund Administrative budgets for 2023 and 2024.
As part of approving the final 2023 budget, the board also approved a $15 million credit against the 2023 operating fee, reducing by approximately 17 percentage points the amounts that would otherwise be due from credit unions that pay the fee. Average fees paid by federal credit unions will decline in 2023 by approximately 1.8%, the third consecutive year of declining fees, according to the agenchy.
Combined, the Operating, Capital and Share Insurance Fund administrative budgets will be $360.4 million, an increase of $20.9 million, or 6.2%, compared to the 2022 board-approved budget levels. The combined budgets for 2024 are estimated at $403.2 million.
Financial innovation
The board unanimously approved a financial innovation proposed rule that would amend the NCUA’s regulations on loan participations, eligible obligations, and notes of liquidating credit unions. The changes would primarily affect federal credit unions by removing current limits on purchases of eligible obligations and by removing qualifying criteria for federal credit unions to purchase non-member loans from federally insured credit unions.
The goal of this proposed rule is to clarify the NCUA’s current regulations and provide additional flexibility, thereby making it easier for federally insured credit unions to take advantage of advanced technologies and opportunities offered by the financial technology.
The full results of the meeting can be accessed on the NCUA website. The next board of directors meeting is at 10 a.m. on Jan. 26 and can be livestreamed at ncua.gov.