Responding to complaints from the chief executives of CUNA and NAFCU, NCUA Chairman Debbie Matz said the agency's budget is "wholly appropriate," in light of the challenges that the industry faces.
She wrote both CUNA President/CEO Dan Mica and NAFCU President/CEO that the $200.9 million budget, a 13% increase from 2009, "balances the need for additional supervision while the industry is under duress with a recognition that credit union resources are limited."
Matz also responded to specific issues raised by Becker and Mica.
She wrote Becker, who suggested the agency lower the NCUSIF equity ratio, that because of operating losses the fund is already likely to drop to 1.28%, and she said the board will decide next fall whether to replenish the fund to 1.3% or let it continue to decline.
She added that decision would be based on their experience "tracking several key economic and institutional factors."
Matz wrote Mica that the agency is continuing "broad-based explorations," of ways that legacy assets can be addressed but rejected Mica's assertion that NCUA regulations and GAAP do not require the depletion of corporate capital.
