Summary

Thousands of insured credit unions have placed about $30 billion--a substantial part of their unloaned deposits--in the 44 corporate credit unions for investment purposes. This concentration of credit union assets represents a large potential risk to the National Credit Union Share Insurance Fund, so the safe and sound operation of corporate credit unions is a necessity. This testimony highlights the combined financial condition of these institutions, their investment policies and practices, and current issues they are facing. GAO also discusses potential problems that could affect the financial health of the corporate credit unions, the credit union industry, and the Insurance Fund.