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."

Instant Insights /

Budget Briefings Better Than Hearings: Onsite at NAFCU Annual

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