Across the country, there are nearly 5,000 credit unions serving American families and Main Street small businesses. With a mission to serve not only their members, but also their surrounding communities, credit unions are often a beacon of hope, fostering economic revitalization in areas left behind by big banks. Given their member-owned, cooperative structure along with their mission-focused and community-driven nature, credit unions go to great lengths to ensure their members' financial stability and provide access to affordable and safe financial services products.
The National Credit Union Administration is the regulating agency for all federally insured credit unions. As such, the agency is entirely funded by the credit unions it serves. Credit unions are entrusted by their members to be responsible stewards of their funds — the NCUA should operate with that same mindset.
From my experience in Washington, it seems that policymakers' favorite pastime is to egregiously spend money on antiquated or untested programs. Unfortunately for credit unions and the 134 million members they serve, the NCUA is no different.
Last week, the NCUA board unanimously approved its
From undefined cybersecurity expenses to unjustified increases in examiner staff, credit unions deserve a clear breakdown of this budget to determine exactly what their annual fees, which will increase next year, will fund. For an industry built on community growth and economic prosperity for those who are often left behind by big banks, the NCUA must act in good faith and provide expanded justification.
NAFCU is calling for increased transparency and oversight from the agency throughout the year to prevent cost overruns similar to what was experienced with the NCUA's failed management of its Model Examination and Risk Identification Tool (MERIT) funding, which ballooned to cost 80% more than the agency originally projected. We have consistently raised red flags and will continue to reiterate, this program — among many others — is extremely troubling for credit unions that are mindful of every dollar spent.
With the NCUA's current projected operating budget for 2024 already sitting at a 12% increase, it's time for the agency to look internally and remember they work for credit unions, not the other way around.
NAFCU looks forward to continually evaluating the agency's actual budgetary needs to help correct some wrongs of the past and find a path toward consistent budget reductions moving forward. Credit unions deserve an NCUA that is as efficient and effective with their dollars as they are with their members' hard-earned dollars.
