As Prepared for Delivery on February 17, 2022
Thank you, Scott. for your presentation.
I’m supportive of this proposed rule for several reasons.
First, the relative risk to the share insurance fund today for a $15 billion federally insured credit union represents the same relative risk as a $10 billion federally insured credit union did in 2013when tier 1 credit unions first transitioned to the Office of National Examinations and Supervision’s (ONES) supervision.
Second, this adjustment will allow NCUA to manage its resources more efficiently by continuing to supervise most tier 1 covered credit union through the Regional Offices. Without this adjustment, the number of covered credit unions supervised by ONES would nearly double in calendar year 2023, requiring substantial reallocation of agency resources. That reallocation would, of course, impact the budget.
Also, the regulatory requirements for $10 billion credit unions are not affected by the proposed rule. For example, capital planning and stress testing are triggered at $10 billion in assets. These requirements will remain in effect regardless of supervisory office.
Right now, the proposed rule contemplates federally insured credit union s between $10 billion and $15 billion that have already transitioned to ONES supervision will remain under ONES supervision. Leaving these credit unions with ONES rather than transitioning them back to the regions is less disruptive to both the credit unions and NCUA.
Scott, how will this change affect tier 1 state- chartered credit unions and supervisors?
Thank you. Mr. Chairman, this concludes my remarks.