WASHINGTON (11/6/13)--The future of the National Credit Union Administration's budget, risk-based capital and proposed credit union service organization rules are some of the issues covered in part two of NCUA Chairman Debbie Matz's Inside Exchange interview with the Credit Union National Association's Paul Gentile.
Matz said the 2014 budget will contain some increases to address long-awaited pay raises for some employees. Funds will also be raised to retrain staff to implement new rules, regulations and benefits for credit unions. The agency, Matz noted, needs to be able to supervise credit unions and cope with complex issues like cybersecurity, derivatives and commercial real estate loans.
"We need to have the staff on hand that are adequately trained, and that involves additional resources," she said. "I don't see anytime soon that our budget will go down, but we try to keep the increases reasonable."
One area marked for additional upcoming oversight is credit union service organization (CUSO) regulations, Matz reminded in the interview. The agency is developing a CUSO registry so the NCUA will know "who they are, who their principles are, who their members are, and what they do."
On risk-based capital, Matz noted that an upcoming rule is unlikely to impact many credit unions. The rule, she said, is being drafted in a way that will require credit unions with a high amount of risk to hold more capital. "I think most people would think that's a prudent thing to do," she added.
Overall, Matz said, the NCUA's regulatory modernization initiatives are working well. Matz said she is "very confident that the agency has made significant changes to make it easier for credit unions to comply with rules. "And we're going to keep doing it," she said.
In part one of the Inside Exchange interview with the NCUA chairman, CUNA's Gentile and Matz discussed corporate assessments, relations with the Consumer Financial Protection Bureau, examinations, Wall Street lawsuits and other top issues.