ALEXANDRIA, Va. — The NCUA is to discuss and vote on its budget, discuss several rules changes and hear a report on the health of the National Share Insurance Fund at its meeting next Thursday.
The agency announced last month that the budget proposal would most likely be for 182.9 million, a $24.3 million increase over the current level. The additional funds will be used mostly to hire about 100 new examiners, centralize the chartering process and place federal credit unions on a 12-month examination cycle. The budget, which the board must approve, takes effect Jan. 1.
The fund had $7.8 billion in assets, according to a report given to the board at last month's meeting. But NCUA Chairman Michael E. Fryzel asked for additional information at next Thursday's session about how much the fund has paid out this year and over the past 10 years.
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The board is also slated to issue final rules to change the credit union chartering process that clarifies the procedures for determining whether an "underserved area" qualifies as a "local community." The proposal also addresses how certain economic and demographic data can be used to determine if an area that combines geographic units qualifies as underserved. They also clarify data needed to show that a proposed area has "significant unmet needs for financial services."
The board is also scheduled to vote on implementing changes approved by Congress in 2005 that clarified the definition of a credit union's net worth during a merger for purposes of prompt corrective action. It defines a credit union's net worth as a retained earnings balance of the credit union combined with any amounts that were previously retained earnings.
The meeting is scheduled to take place at 10:00 a.m. at the agency's headquarters here.
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