As Prepared for Delivery on July 20, 2023
Thank you, Eugene for your presentation. I have been very vocal that when it comes to the budget, we are, quite obviously, spending other people’s money. And unlike government agencies like the NCUA, credit unions and private sector businesses cannot simply charge more to make ends meet. Competition keeps prices in check and ensures that only the most relevant products remain in the marketplace. We at the NCUA have no actual competition unless we meaningfully compete against ourselves to improve our effectiveness every day.
Credit unions by and large are doing well, but margins are shrinking, interchange and fee income are flatlining or declining, and expenses continue to increase. We must always keep in mind credit unions operate in a very different environment than we do. We must also continually work to improve the viability and safety of America’s credit unions.
This budget includes two new hires in the Office of Credit Union Resources and Expansion (CURE). While I am always somewhat resistant to hiring more staff, CURE directly and immediately impacts the growth of new and existing federal credit unions. I believe it is in the best interest of the credit union movement, individual credit unions, and the National Credit Union Share Insurance Fund to ensure CURE is as productive as possible.
I also believe that more staff will not improve long-term productivity before a reengineering of processes that may be out of date. It is critical that we ensure the most efficient use of resources to help staff do more with less.
I would like to thank Chairman Harper, Board Member Hood, and management for their commitment to a coordinated effort for process improvement within CURE.
This concludes my remarks. Thank you, Mr. Chairman.