Mike Schenk, CUNA vice president of economics and statistics, and 4 members of CUNA’s examination and supervision subcommittee presented testimony on budget and transparency issues on behalf of CUNA Thursday at the NCUA’s budget briefing. This was the first such briefing conducted by the agency since 2008.
“We appreciate NCUA responding to our request and taking this important step in the interest of transparency, but we continue to call for improvements,” Schenk said. “Credit unions deserve a smaller and better regulator. The coming extended exam cycle should help to reduce costs in the future. However, the agency’s budget has continued to grow since the financial crisis while the FDIC’s continues to shrink.
“Additionally, one in five credit unions CEOs have said they are dissatisfied with their exam process. These are important issues that NCUA must address, and we will continue to work with the agency for the betterment of the credit union system,” Schenk added.
During his presentation, Schenk said that credit unions would like to see continued evidence that the agency puts careful thought behind putting each year’s budget together, and to see that the agency has a “laser focus” on keeping costs down.
CUNA and its examination and supervision subcommittee have long reviewed and commented on the NCUA budget in letters and meetings with the agency.
The subcommittee members who testified Thursday were Sean Gaven, senior vice president and chief financial officer of American Airlines FCU; Paul Gentile, president/CEO at the Cooperative Credit Union Association and chairman of the subcommittee; Bill Raker, president/CEO of Firefly CU; and Gordon Sam, chairman of the board of directors of Pearl Hawaii FCU.
Comments on the budget can be submitted to the NCUA until 5 p.m. (ET) on Nov. 4. The board will vote on a 2-year budget at its Nov. 17 meeting.