On July 21, NCUA announced that it’s restructuring its offices and operations so the agency can carry out its mission of ensuring the safety and soundness of the credit union system in a more efficient and cost effective way.
“The time has come for the NCUA business model to change,” Board Chairman J. Mark McWatters said. “Positioning the NCUA to meet the changing demands of the credit union system we regulate in a transparent and fully accountable manner while promoting efficiency and effectiveness is essential. Re-evaluating our operations is integral to fulfilling our statutory responsibilities to protect the deposits of the nearly 108 million credit union members while maintaining the safety and soundness of the Share Insurance Fund and the viability of the credit union system.”
In late 2016, the agency created internal review teams to rethink the agency’s operations and make recommendations to the Board. Among the recommendations the Board approved in July were:
- Consolidating the agency’s five regional offices into three by closing the Albany, New York, and Atlanta, Georgia, offices and eliminating four of the agency’s five leased facilities;
- Creating the Office of Credit Union Resources and Expansion by redefining and realigning the agency’s chartering and field-of-membership, credit union development, grants and loans, and minority depository institutions perseveration programs;
- Restructuring the Office of Examination and Insurance into specialized working groups; and
- Changing the Asset Management and Assistance Center’s operations and reporting structure.
“Months of very hard work by agency staff have produced a solid, commonsense plan that will help the agency respond to a new economic environment without sacrificing its ability to ensure the safety and soundness of our credit union system,” Board Member Rick Metsger said. “The restructuring effort will come together over a period of years, and credit unions will reap tangible benefits from our work.”
NCUA also plans to eliminate agency offices with overlapping functions and improve other functions like examination reporting, records management and procurement. The proposed plan anticipates a reduction in the agency’s workforce by attrition.
Additional details about the agency’s restructuring plan, including projected cost savings, will be available at the upcoming fall budget briefing.