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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)
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NCUA’s 2006 report to OMB
on with the E-Gov Act of 2002, and a copy of
OMB Memorandum M-06-25