NCUA approves 2019-20 budget, proposes bonds rule

November 15, 2018

The NCUA board approved the agency’s 2019 and 2020 operating budget at its Thursday meeting, in addition to issuing a proposed rule on fidelity bonds. CUNA presented at the agency’s budget briefing last month, and submitted formal written comments on the budget.

“We thank NCUA for its work on the budget, and for the steps taken to modernize the agency as it works to become a leader and innovator in the financial services industry,” said Mike Schenk, CUNA’s chief economist.

The board also approved a proposed rule to amend fidelity bond requirements for corporate and natural person credit unions.

According to NCUA staff, the proposal has four purposes:

  • Strengthen a board of directors’ oversight of a credit union’s fidelity bond coverage;
  • Ensure there is an adequate period to discover and file covered claims following a credit union’s liquidation;
  • Formalize a 2017 Office of General Counsel legal opinion that permits a natural person credit union’s fidelity bond to include coverage for certain credit union service organizations; and
  • Clarify the documents subject to the NCUA Board’s approval and require all bond forms receive the NCUA board’s approval every ten years.

The meeting also featured a quarterly update on the National Credit Union Share Insurance Fund.