NAFCU statement on NCUA board action on fixed asset rule, no TCCUSF assessment and mid-year budget review
WASHINGTON, (July 31, 2014) — National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Mike Coleman issued the following statement in response to today’s National Credit Union Administration (NCUA) Board meeting, during which the NCUA Board approved a proposal to eliminate the 5 percent cap on federal credit union ownership of fixed assets, indicated no Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessments going forward and reviewed its Mid-Year Operating Budget.
“We appreciate the agency’s proposal to help alleviate credit unions’ regulatory burden and eliminate the 5 percent cap on federal credit unions’ investment in fixed assets,” said Coleman. “NAFCU has long sought relief for federal credit unions from this arbitrary cap and has included it in the association’s “Dirty Dozen” list of rules we would like to see improved or eliminated.
“We will review this rule carefully for its full impact, including the creation of a new regulatory requirement for a fixed assets management program as well as a separate provision addressing occupancy for acquired premises. We will seek our members’ input and plan to comment on the proposed rule.”
“Additionally, we are pleased that NCUA staff expects credit unions will likely not have any more assessments to fund the Temporary Corporate Credit Union Stabilization Fund based on current figures.”
In terms of NCUA’s 2014 Mid-Year Operating Budget, NAFCU has written the agency expressing its concerns regarding the pattern of NCUA’s overall increases in its operating budget for 2014 following significant increases in 2013. NAFCU has urged greater transparency with the National Credit Union Share Insurance Fund, the Temporary Corporate Credit Union Stabilization Fund and the Central Liquidity Facility.
“Because these funds are fully supported by credit union assets, NAFCU believes credit unions are entitled to know how each fund is being managed. NAFCU continues to urge NCUA to exercise greater transparency by fully disclosing the amounts disbursed and allocated for each fund ”