The National Credit Union Administration (NCUA) announced or reminded credit unions of the following this week: the agency’s operating fee schedule for 2023; the U.S. Treasury Department’s second Emergency Capital Investment Program (ECIP) application round (due Jan. 31); and the agency’s Credit Union Diversity Self-Assessment for 2022 (also due Jan. 31).
FCU Operating Fee Schedule for 2023
The NCUA Board unanimously approved (during its December 2022 meeting) the agency’s 2023 operating and capital budgets. As a result of that decision and other factors, federal credit union operating fees will decrease by an average of approximately 1.8 percent in 2023.
Most of the reduction in the 2023 operating fee results from the NCUA Board applying a $15 million credit to amounts that would otherwise be owed to support the approved 2023 operating and capital budgets.
The $15 million credit comes from previously collected operating fees that remained unspent at the end of 2022. The remaining reduction to the 2023 operating fee results from the 8.5 percent asset growth in federal credit unions exceeding the growth of the NCUA’s combined operating and capital budgets.
The enclosed 2023 Operating Fee Schedule will help you calculate the exact amount of your credit union’s 2023 operating fee. The enclosure includes a web link to the NCUA’s online calculator. In March 2023, the NCUA will provide individual invoices that will include the specific dollar amount for each credit union’s operating fee. If your credit union owes an operating fee, it will be due no later than Tuesday April 18, 2023.
You can read this letter to federal credit unions here.
U.S. Treasury’s 2nd ECIP Application Round: Due Jan. 31
The U.S. Treasury Department’s second application round of Emergency Capital Investment Program (ECIP) funding closes Jan. 31, 2023. Treasury anticipates between $160 million and $340 million will be available for investment in qualified institutions in the second round. Applications are due January 31, 2023, at 11:59 p.m. Eastern. For more information, please visit the U.S. Treasury’s website.
Credit unions participating in the second round of ECIP funding and that meet the eligibility requirements under the NCUA’s Subordinated Debt rule may also apply for regulatory capital treatment under the pre-approval requirements outlined in the rule.
As in the ECIP’s first round, Treasury requires approved, qualified financial institutions to select a maturity of either 15 or 30 years during the closing process. Currently, the NCUA’s Subordinated Debt rule limits the maximum maturity of Subordinated Debt Notes to 20 years.
Last September, the NCUA Board issued a notice of proposed rulemaking to, among other things, provide flexibility on the maximum maturity of Subordinated Debt Notes. The Board is currently reviewing comments received on this rulemaking and will consider a final rule in the first half of 2023.
In the meantime, a credit union applying to the NCUA for regulatory capital treatment should indicate in its application that it would elect either the 15- or 30-year maturity in the event the NCUA Board finalizes the September 2022 proposed rule permitting a longer maturity period. If the Board does not finalize the proposed changes, second-round issuances will be subject to the 20-year maturity limit in the current Subordinated Debt rule.
The NCUA encourages credit unions to submit their Subordinated Debt applications to the appropriate NCUA supervision office by February 28, 2023. Contact your appropriate supervision office with any questions about the application process.
CU Diversity Self-Assessment for 2022: Due Jan. 31
The deadline to complete and submit the voluntary Credit Union Diversity Self-Assessment is quickly approaching. Please submit your credit union’s self-assessment to the NCUA by Jan. 31, 2023.
The Credit Union Diversity Self-Assessment is designed to help credit unions evaluate and advance their diversity policies and practices. Credit unions can voluntarily use the online tool to create a baseline for action, such as making the commitment to develop new products and services aimed at addressing the needs of communities of color, increasing investment in underserved areas, or improving community marketing and outreach.
The voluntary self-assessment is not part of the examination process. Completing an assessment will not impact your CAMELS rating. There are many benefits in confidentially sharing your diversity, equity, and inclusion journey with the NCUA, but it will not be used in the supervisory process.
The information you confidentially submit in the self-assessment goes directly to the NCUA’s Office of Minority and Women Inclusion, which aggregates the data and only shares the results anonymously in the NCUA’s annual OMWI Congressional Report and Voluntary Credit Union Diversity Self-Assessment Results Report. The NCUA will not publish any information identifying a particular credit union or individual without written approval.
Broad participation by all credit unions helps the NCUA report more meaningful data. Credit unions of all sizes, especially those with 100 or more employees, are encouraged to complete the voluntary Credit Union Diversity Self-Assessment.