NASHVILLE, Tenn. - NCUA Chairman Rick Metsger's 2017 budget briefing won't just be as good as the agency's previous budget hearings. The October event will be better, he said at NAFCU's annual conference here Wednesday.
"The difference will be significant," he told CU Times.
Previous budget hearings were attended primarily by trade associations, and no budget information was released in advance, he said.
Because the NCUA released details on its 2017 budget last fall, stakeholders can review the information online now, Metsger said. Even though the October budget briefing will be at the NCUA's Alexandria, Va., headquarters, the agency may webcast the event and allow the credit union community to submit questions via social media and other platforms.
"I want it to be accessible, not just for the people who can be in Alexandria," he said. "I'd expect we would set up something so people can participate in a live, real way."
Additionally, information on the prospective 2018 budget will also be provided before the budget briefing.
"Having that ability to be transparent and clear, there's nothing secretive," he said. "I think it's always beneficial to tell the story of what you're trying to do. I think it's an opportunity to show the community how much work we put into the budget."
Metsger's ambitious 2016 agenda will also focus on examination reform, which includes not just less frequent exams for well managed credit unions, but also better analysis of call report data before the exam and better coordination between federal and state regulators so examiners from both entities can be onsite at credit unions at the same time, he said.
Metsger said he plans to update NCUA staff on exam reform during a Thursday webinar following the monthly NCUA board meeting.
"Change always provides angst because people don't know the impact," Metsger said of the potential reaction from NCUA staff regarding the change. "Part of my responsibility is to show how this change will make us more efficient and effective."
One outcome of exam reform could be more scrutiny on small, state chartered credit unions that haven't been examined much recently, and have insufficient internal controls, Metsger said. Better use of technology in examining larger credit unions could result in more hours devoted to small credit unions to detect and prevent internal fraud.
"It's not a permanent thing, but if we haven't touched them in five years, or ever, as the insurer we probably should do that," he said.
Exam reform could also provide examiners and regional offices with more flexibility to examine credit unions as needed, rather than adhering to a rigid schedule, Metsger said.
"An examiner should be able to ask the (regional director), 'Can I have another 16 hours at this credit union?’" he said. "This could provide that. Putting resources where the risk is, putting it where the help is needed, and being flexible to adjust for change."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.