National Credit Union Administration

National Credit Union Administration
National Credit Union Administration
Official seal
Agency overview
Formed March 10, 1970
Preceding agency Bureau of Federal Credit Unions
Jurisdiction Federal government of the United States
Headquarters Alexandria, Virginia
 United States
Employees 1,141 (March 2011) [1]
Annual budget $225.4 million USD (2011)[2]
Agency executives Deborah Matz[3], Chairman
Michael E. Fryzel, Board Member
Gigi Hyland, Board Member
Banking in the United States

Monetary policy
The Federal Reserve System


Credit card

Deposit accounts
Savings account
Checking account
Money market account
Certificate of deposit

Deposit account insurance

Electronic funds transfer (EFT)
ATM card
Debit card
Bill payment
Wire transfer

Check Clearing System
Substitute checksCheck 21 Act

Types of bank charter
Credit union
Federal savings bank
Federal savings association
National bank

v · United States independent federal agency that supervises and charters federal credit unions. NCUA also insures savings in federal and most state-chartered credit unions across the country through the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the full faith and credit of the United States government.

As of March 2011, there were 7,292 federally insured credit unions with over 90 million members, total assets of $939.28 billion, and net loans of $550.8 billion.[4]



The NCUA is governed by a three member board appointed by the President of the United States and confirmed by the United States Senate. The President also chooses which member will serve in the position of Chairman.[5] Board members serve six year terms, although members often remain until their successors are confirmed and sworn in.[5]

The NCUA is administered through five regional offices, each responsible for specific states and territories.[4]

Region Headquarters States
Region I Albany, NY Connecticut, Massachusetts, Maine, Michigan, New Hampshire, Nevada, New York, Rhode Island, and Vermont
Region II Alexandria, VA California, District of Columbia, Delaware, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia
Region III Atlanta, GA Alabama, Florida, Georgia, Indiana, Kentucky, Mississippi, North Carolina, Ohio, Puerto Rico,South Carolina, Tennessee, and Virgin Islands
Region IV Austin, TX Arkansas, Iowa, Illinois, Kansas, Louisiana, Minnesota, Missouri, North Dakota, Nebraska, Oklahoma, South Dakota, Texas and Wisconsin
Region V Tempe, AZ Alaska, Arizona, Colorado, Guam, Hawaii, Idaho, Montana, New Mexico, Oregon, Utah, Washington, and Wyoming


The chartering of credit unions in all states is owed to the signing of the Federal Credit Union Act by President Franklin D. Roosevelt in 1934 as part of the New Deal. The federal law sought to make credit available and promote thrift through a national system of nonprofit, cooperative credit unions.

At first the newly created Bureau of Federal Credit Unions was housed at the Farm Credit Administration. Responsibility of regulation would shift over the years as the agency migrated from the Federal Deposit Insurance Corporation to the Federal Security Agency, then to the Department of Health, Education, and Welfare.

In the 1940s and 1950s credit unions grew steadily - reaching a membership of more than six million people by 1960 - at over 10,000 federal credit unions.


The great growth resulted in an overhauling of the Bureau of Federal Credit Unions to form the modern independent federal agency that regulates under the present day title.

In 1970, the renaming to National Credit Union Administration was made possible by the creation of the National Credit Union Share Insurance Fund (NCUSIF) to insure credit union deposits. The NCUSIF was created without any tax dollars, capitalized solely by credit unions.[citation needed]

By 1977, services available to credit union members expanded, including share certificates and mortgage lending. In 1979, a three-member Board replaced the NCUA administrator. Congress added the finishing touches to this new administration by the addition of the Central Liquidity Facility, the lender of last resort for chartered credit unions.

The decade of the 1970s saw substantial growth for credit unions, with membership doubling and assets tripling to over $65 billion.

1980s on

The high interest rates and unemployment in the early 1980s brought insurance losses; the enhancement of member services in the 1980s accompanied deregulation and increased flexibility in merger and field of membership criteria. Previously, membership in credit unions was generally limited to select groups with a pre-existing common bond, often employees of a particular company or trade. Membership eligibility was opened up to include much larger, loosely defined groups, such as all residents of a geographical area. The National Credit Union Share Insurance Fund experienced strain, and credit unions lobbied for Congressional oversight to recapitalize the Fund.[citation needed]

In 1985 the plan was enacted, and federally insured credit unions recapitalized the NCUSIF by depositing 1 percent of their shares into the Share Insurance Fund. The fully capitalized National Credit Union Share Insurance Fund has "fail safe" features. Only once in 1991, when equity level dipped below 1.23 percent, has the Board charged credit unions a premium to insure deposits.

During the previous decade and into the 21st century, credit unions are steadily growing. Failures remain low, and the Share Insurance Fund maintains a healthy equity level.

Financial crisis

As the insurer and regulator of Federally chartered credit unions, the NCUA oversees credit union safety and soundness, much like the FDIC. It is sometimes required to place credit unions in conservatorship. On March 20, 2009, during the financial crisis of 2007–2010, the NCUA took over the two largest corporate credit unions with combined assets of $57 billion because of the losses on their investments in mortgage-backed securities.[6]

Insurance coverage

This sign, displayed at all credit unions, informs members that their savings are insured by the NCUA.

Most properly established share accounts in federally insured credit unions are insured up to the Standard Maximum Share Insurance Amount (SMSIA), which has been $100,000 since the passage of the Depository Institutions Deregulation and Monetary Control Act in 1980. The Emergency Economic Stabilization Act passed in October 2008 to address the subprime mortgage crisis increased the insurance coverage on regular share accounts to $250,000 until the end of 2013. In September 2010, the NCUA announced that the $250,000 coverage would be permanent.[7] Certain retirement accounts, such as Individual Retirement Accounts and Keogh Plans, are insured separately, and had their coverage raised to $250,000 under the Federal Deposit Insurance Reform Act of 2005. Generally, if a credit union member has more than one account in the same credit union, those accounts are added together and insured in the aggregate.[8]

Credit unions may also offer an array of additional financial services which are not covered by federal insurance.

On March 9, 2011, Board Chairman Debbie Matz unveiled, a one-stop toolbox of educational information and personal finance tips designed to help individuals in making smart financial decisions and better choices for their money. The website also explains how credit unions work, where to find a credit union to join, and even how to start a credit union. [9]

See also


  1. ^ FedScope
  2. ^ "Board Action Bulletin: Board Meeting Results for November 18, 2010". National Credit Union Administration. 2010-11-18. Retrieved 2011-04-30. 
  3. ^ "Deborah Matz Sworn-in as NCUA Chairman". Press Release. National Credit Union Administration. 200-08-24. Retrieved 2009-08-25. 
  4. ^ a b "NCUA Letters to Credit Unions 11-CU-07 (Enclosure)". Credit Union National Association. Retrieved 2011-06-30. 
  5. ^ a b Mark, Claude R. (2008-07-03). "Johnson to Stay in NCUA Chairmanship till August". Credit Union Times (Highline Media). Retrieved 2008-07-07. 
  6. ^ retrieved on March 21, 2009
  7. ^ "NCUA Media Release". National Credit Union Administration. Retrieved 2011-08-21. 
  8. ^ "Share Insurance". National Credit Union Administration. Retrieved 2010-04-12. 
  9. ^ "Matz Launches NCUA's". Narional Credit Union Administration. Retrieved 2011-03-09. 

External links

Wikimedia Foundation. 2010.

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