The NCUA Board will hold its mid-year budget review next week, as well as vote on a proposed rule to eliminate the 5% limitation on federal credit union investments in fixed assts.
The agency released its July 23 open meeting agenda Thursday, which showed the proposed elimination as one of several topics to be discussed at the meeting.
NAFCU released an announcement stating, in part, that it supports relief for federal credit unions from the fixed-assets limitation. The rule would remove the limit, which is currently in place for credit unions with $1 million or more in assets, as well as provisions relating from the cap.
The NCUA proposed the new rule in March in its third open meeting of 2015. The rule would also eliminate provisions relating to waivers from the aggregate limit, simplify the partial occupancy requirements by establishing a single six-year period and removing the current 30-month requirement, and move oversight of federal credit union fixed-asset ownership from regulation to the supervisory process.
If adopted, the new rule would affect more than 3,700 federal credit unions.
NAFCU also called for a line-by-line scrutiny of the NCUA's budget, including employee salaries and benefits. The NCUA budget made headlines recently after the agency finalized a five-year collective bargaining agreement with the National Treasury Employees Union; NCUA Board Member Mark McWatters vocalized his disapproval of the agreement process.
Earlier this week, two high-ranking officials confirmed that NCUA Board Chairman Debbie Matz will testify July 24 on the NCUA budget before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit.
Other items listed on the board's agenda included the National Credit Union Share Insurance Fund, the NCUA Guaranteed Notes performance report and Corporate Stabilization Fund assessment determination, Capital Planning and Stress Testing schedules, and mid-year operating budget reprogramming.
The board meeting will be held at 10 a.m. EST at 1175 Duke Street in Alexandria, Va. The webcast will also be available online at ncua.gov.
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