About NCUA
The National Credit Union Administration (NCUA) is the independent federal agency
that charters and supervises federal credit unions. NCUA, backed of
the full faith and credit of the U.S. government, operates the National
Credit Union Share Insurance Fund (NCUSIF) insuring the savings of
80 million account holders in all federal credit unions and many state-chartered
credit unions.
NCUA History
In 1934, President Roosevelt signed the Federal Credit
Union Act into law authorizing the formation of
federally chartered credit unions in all states. The purpose of the
federal law was to
make credit available and promote thrift through
a national system of nonprofit, cooperative credit unions.
After the Federal
Credit Union Act was signed into
law, the new Bureau of Federal Credit Unions was
first housed at the Farm Credit Administration. Regulatory responsibility
shifted over
the years as the agency moved from the Federal Deposit
Insurance Corporation to the Federal Security Agency, and then the
Department of Health,
Education and Welfare.
Meanwhile, in the ‘40s and ‘50s credit unions grew
steadily and by 1960 credit union membership reached
more than 6 million people at over 10,000 federal credit unions.
In 1970, the Bureau became an independent federal
agency when the National Credit Union Administration
was formed to charter and supervise federal credit unions, and the
National Credit
Union Share Insurance Fund (NCUSIF) was also formed
to insure credit union deposits. In the independent credit union spirit,
the NCUSIF
was created without tax dollars and capitalized solely
by credit unions.
The 1970s brought major changes in the products offered
by financial institutions and credit unions found
they too needed to expand their services. In 1977, legislation expanded
services available
to credit union members, including share certificates
and mortgage lending. In 1979, a
three-member Board replaced the NCUA
administrator.
That same year Congress created the Central Liquidity
Facility, the credit union lender of last resort.
The 1970s were years of tremendous growth in credit
unions. The number of credit union members more than
doubled and assets in credit unions tripled to over $65 billion.
Deregulation, increased flexibility in merger and
field of membership criteria, and expanded member
services characterized the 1980s. High interest rates and unemployment
in the early '80s brought
supervisory changes and insurance losses. With the
Share Insurance Fund experiencing stress, the credit union community
called on Congress
to approve a plan to recapitalize the Fund.
In 1985, federally insured credit unions recapitalized
the NCUSIF by depositing 1 percent of their shares
into the Share Insurance Fund. Backed by the "full
faith and credit of the United States Government," the fully-capitalized National Credit Union Share Insurance Fund has "fail safe" features. Since recapitalization, the NCUA Board has only charged credit unions
one premium when the Fund dropped to a 1.23 percent equity level in
1991.
During the 1990s and into the 21st century, credit
unions have been healthy and growing. Credit union
failures remain low and the Share Insurance Fund maintains a healthy
equity level.
The original intent of Congress to create a system of
not-for-profit cooperatives that promote thrift and thwart usury today
serves nearly 82 million members with deposits exceeding $520 billion
and loans over $355 billion in more than 9,500 federally insured credit
unions.
For more information about our general structure please
view our Organization Chart.
We have compiled a report about Quick Facts about Credit Unions and NCUSIF.
We also have a list of questions frequently asked of NCUA.
Small Business Paperwork Relief Act (SBPRA)
Information Quality Guidelines
Content Posting Policy - (PDF)
NCUA’s 2006 report to OMB on with the E-Gov Act of 2002, and a copy of OMB Memorandum M-06-25
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