Press Releases

Subcommittee Examines the National Credit Union Administration's Operations and Budget

Washington, July 23, 2015 - The Financial Services Financial Institutions and Consumer Credit Subcommittee held a hearing today to conduct much-needed oversight of the National Credit Union Administration’s (NCUA) operations and budget.

Unlike many other federal agencies, NCUA operates independent of the congressional appropriations process as their operating budget is fulfilled predominately by assessments of the federal credit unions they oversee. In each year since 2008, the NCUA budget has increased but, at the same time, the number of credit unions has dropped by nearly a quarter.  

“Today’s hearing will mark the first time since 2011 that the NCUA Chair has testified before Congress. As with any federal agency, it is imperative that we conduct vigorous oversight of budgeting and operations. This ensures that the money paid into the system by credit unions is being spent appropriately, and that the taxpayers remain protected by a strong Share Insurance Fund. Further, it ensures rigorous debate of policy decisions made by the NCUA,” said Subcommittee Chairman Randy Neugebauer (R-TX).

“I am hopeful Chair Matz will address two issues in particular. First, the NCUA’s budget has increased each year since 2008, sometimes by double-digit percentages. However, during the same timeframe, the number of credit unions has dropped by nearly a quarter. I hope to hear Chair Matz outline clear justifications for this budget increase that does not appear to match supervisory demands,” Neugebauer added.

Key Takeaways:

  • NCUA needs greater transparency and accountability to support its mission and better protect taxpayers.
  • NCUA has an important role to ensure credit unions remain sound, but there is a clear absence of adequate due diligence in its rulemaking efforts.
  • NCUA is regulating credit unions out of conformity rather than necessity

Print version of this document