State Credit Union Board Approves 70% Reduction in 2025 Assessments
To further Governor Stitt’s fiscal responsibility initiatives for state agencies, the Oklahoma State Credit Union Board approved the Banking Commissioner’s recommendation to reduce assessments paid by Oklahoma state-chartered credit unions at its meeting on November 19. After setting assessments at the rate first established in 2006, the Board then approved a discount of 70% for each credit union. The Commissioner presented a proposed budget to the Board that reflected how the Department can continue efficient operation even with such a large reduction.
The Board has approved a reduction in assessments for state-chartered credit unions since 2012. Based on estimates, the total of all assessment reductions (for credit unions and banks) will result in the Department operating with a budget deficit for 2025 and require it to use a portion of its reserve funds to make up the difference. Commissioner Thompson emphasized that the Department should not hold excessive reserve funds and said the Board’s action will allow the Department to maintain a reserve account that provides a reasonable cushion for unplanned events, but will also fit within the Governor’s call to be fiscally responsible.
Commissioner Thompson stated that a reduction in assessments is one of the ways the Banking Department can reduce regulatory burden on state-chartered institutions. He recognized most regulatory matters are issued from the federal government and that states cannot directly eliminate that burden. However, he stated that any savings achieved by a reduction in assessments can be redirected toward other operations and help offset increased costs incurred to comply with federal laws
Please Note:
The email address from which this communication was sent is not monitored for responses. You may send responses to regina.rainey@banking.ok.gov instead. Thank you.
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