ALEXANDRIA, Va. — Citing the perilous economic climate and the need for greater scrutiny of credit unions, the NCUA said today it is likely to ask for $182.9 million for the next budget, a $24.3 million increase over this year's level.
The additional funds, which would be paid for by a 10% increase in the fees that federal credit unions pay the agency, would be used to hire additional personnel, centralize the chartering process and place federal unions on a 12-month examination schedule.
The agency hopes to hire 100 additional examiners, five problem case officers, five risk management officers and additional support staff.
NCUA Executive Director Leonard Skiles said the additional personnel are needed because the agency needs provide closer oversight. He noted, for example, that CAMEL ratings have a “shorter shelf life” when conditions change quickly.
He also noted that because of regulatory changes and mergers which have created larger credit unions, the average amount of time examiners spend on each examination will increase from 88 hours to 94 hours next year.
Skiles presented the budget proposal at the agency's annual public hearing. The public can submit comments through Nov. 7 and the NCUA board is scheduled to discuss and vote on its budget request at its Nov. 21 meeting. The request then goes to the Office of Management and Budget which must submit a proposed budget to Congress in February. The budget figures are for the fiscal year that begins Oct. 1, 2009.
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