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NASCUS voices ‘strong support’ for senators’ NCUA budget transparency act
“Strong support” for a Senate version of the NCUA Budget Transparency Act (S.924) – which would also include “notice and comment” of the annual “overhead transfer rate” (OTR) — is expressed in a letter today from NASCUS to senators who introduced the legislation, Sens. Dean Heller (R-Nev.) and Mark Warner (D-Va.). Both are members of the Senate Banking Committee.
“A formal notice and comment requirement for NCUA’s budget, including the overhead transfer rate (OTR), is not only sound public policy; it also helps ensure an equitable playing field for state and federally chartered credit unions,” wrote NASCUS President and CEO Lucy Ito.
Ito also noted that one of the reasons that the U.S. financial system is the most innovative in the world is that, at its core, it is a dual chartering system that fosters cooperative competition between state and federal chartering authorities. “How NCUA allocates its operating costs has the potential to artificially imbalance the dual chartering system with respect to the credit union sector. A formal notice and comment process provides stakeholders a meaningful opportunity to evaluate and formally respond to NCUA’s allocation of expenses across the industry,” she stated.
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