WASHINGTON - Rep. Randy Neugebauer (R-TX), Chairman of the Financial Institutions and Consumer Credit Subcommittee, delivered the following opening statement-as prepared for delivery-at today's Subcommittee hearing to examine the National Credit Union Administration's budget and operations:

"Good afternoon. Community financial institutions are the backbone of Main Street America.

"Credit unions in particular share a unique relationship with local communities. After all, they are cooperatives at their core. They help bring unserved and underserved customers into the financial mainstream. They provide that first credit card for young adults trying to build credit. They help the first-time homebuyer purchase the home they have been dreaming of.

"Often, they are the last corporate citizens left standing in many rural districts, including many areas in my district. Perhaps most important, they are experts at relationship banking - helping to customize products to fit the needs of their customer base.

"Unfortunately, credit unions, like community banks, are suffering from 'one size fits all' regulatory actions from federal regulators. For example, some credit unions now under go stress testing like their larger bank counterparts.

"Because of this increased regulatory burden and the related compliance costs, we have seen massive consolidation of credit unions and inflexible product standardization, which has limited consumer choice.

"Data from the National Credit Union Administration (NCUA) shows we lost nearly 1,000 credit unions between 2010-2014. This trend presents a threat to communities across the country - especially rural and semi-urban areas such as the 19th Congressional District of Texas.

"I worry that without some regulatory flexibility, credit unions will be less able to meet local needs, will stop offering products, or consolidate. To me, this signals problems in the health of the credit union industry.

"Today's hearing will mark the first time since 2011 that the NCUA Chair has testified before Congress. As with any federal agency, it is imperative that we conduct vigorous oversight of budgeting and operations. This ensures that the money paid into the system by credit unions is being spent appropriately, and that the taxpayers remain protected by a strong Share Insurance Fund. Further, it ensures rigorous debate of policy decisions made by the NCUA.

"The NCUA has undertaken significant regulatory policy changes under Chair Matz's leadership, and it is necessary to understand how those actions are affecting the health of the credit union system. Today, our members will get to tackle both tasks.

"During today's hearing, I am hopeful Chair Matz will address two issues in particular. First, the NCUA's budget has increased each year since 2008, sometimes by double-digit percentages. However, during the same timeframe, the number of credit unions has dropped by nearly a quarter. I hope to hear Chair Matz outline clear justifications for this budget increase that does not appear to match supervisory demands.

"Second, I remain concerned that the NCUA has not appropriately outlined how it will address the industry best practice of using capital buffers on top of regulatory capital requirements. The NCUA must clearly signal how it plans to supervise this industry best practice to ensure capital is efficiently put to use and to ensure robust and safe credit availability.

"I look forward to hearing Chair Matz's perspective on these important issues and more during today's hearing. Thank you."