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	1,179 (March 2012)
Annual budget	$251.4 million USD (2013)
Agency executives	Debbie Matz, Chairman Michael E. Fryzel, Board Member
Website
ncua.gov

Banking in the United States
Monetary policy
Federal Reserve System
Regulation
Lending
Credit card
Deposit accounts
Savings account Checking account Money market deposit account Certificate of deposit
Deposit account insurance
Federal Deposit Insurance Corporation (FDIC) National Credit Union Share Insurance Fund (NCUA)
Electronic funds transfer (EFT)
ATM card Debit card Automated Clearing House (ACH) Bill payment Electronic Benefit Transfer (EBT) Wire transfer
Check clearing system
Checks Substitute checks Check 21 Act
Types of bank charter
Credit union Federal savings bank Federal savings association National bank State bank

The National Credit Union Administration (NCUA) is the independent federal agency created by the U.S. Congress to regulate, charter, and supervise federal credit unions. With the backing of the full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 92 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. As of December 2012, there were 6,819 federally insured credit unions, total assets of more than $1 trillion, and net loans of $597.7 billion.

Organization

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. Board members serve six year terms, although members often remain until their successors are confirmed and sworn in.

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

Region	Headquarters	States/ Territories
Region I	Albany, NY	Connecticut, Maine, Massachusetts, Michigan, New Hampshire, New York, Rhode Island, and Vermont
Region II	Alexandria, VA	California, Delaware, District of Columbia, 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, Illinois, Iowa, Kansas, Louisiana, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota, Texas, and Wisconsin
Region V	Tempe, AZ	Alaska, Arizona, Colorado, Guam, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming

History

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

At first, the newly created Bureau of Federal Credit Unions was housed at the Farm Credit Administration. Regulatory responsibility shifted over the years as the bureau 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 at over 10,000 federal credit unions by 1960.

1970s

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 and 1990s

The high interest rates and unemployment in the early 1980s brought insurance losses. The National Credit Union Share Insurance Fund (NCUSIF) experienced strain, and credit unions lobbied Congress to recapitalize the Fund.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. Changes since 1998 as a result of HR 1151, the Credit Union Membership Access Act, opened up membership eligibility to include much larger, loosely defined groups.

In 1985, the plan became law, and federally insured credit unions recapitalized the NCUSIF by depositing 1 percent of their shares into the NCUSIF. 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 1990s and into the 21st century, credit unions grew steadily in assets, shares, and members. Failures remained generally low, and the Share Insurance Fund maintained a healthy equity level.

2000 and Beyond

During the 1990s and into the beginning of the 21st century, U.S. credit unions continued to develop as a whole. The NCUSIF also began to thrive due to very few credit union failures. In 2008 and 2009 the global financial crisis exerted a strain on all institutions in the financial services sector – including credit unions.

Ultimately, five of the largest wholesale corporate credit unions (Constitution Corporate, Members of United Corporate, Western Corporate, Southwest Corporate, and U.S. Central Corporate) in the United States were rendered insolvent after investing in troubled mortgage-backed securities that became overwhelmed with unprecedented declines in value.

In response to the growing corporate credit union crisis, NCUA took the following actions:

• NCUA collaborated with the U.S. Treasury Department and Congress to establish the Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) to ensure the stability of the U.S. credit unions and to protect the NCUSIF.
• NCUA re-securitized the unsuccessful mortgage backed securities after liquidating the five failed corporate credit unions. With a government-backed guarantee, the securities were sold in the market place.
• A temporary share guarantee was established by NCUA for deposits at corporate credit unions.
• Bridge corporate credit unions were established by NCUA to ensure services continued to be provided to consumer credit unions during the transition and resolution timeframe.
• Bridge corporate credit union members and NCUA worked together to ensure a seamless transition of services to new entities.

In addition to the corporate credit union crisis, NCUA dealt with the failure of a number of consumer-owned credit unions in several regions weakened as a result of spikes in home foreclosures, business failures, and unemployment.

To protect against the failure of more credit unions, NCUA implemented a 12-month examination cycle for federally insured credit unions to detect problems in individual credit unions before they became insurmountable. NCUA also began to step up administrative actions wherever necessary to ensure prompt compliance. By year-end 2009, more than 96 percent of credit unions met the statutory definition of “well capitalized.”

Insurance coverage

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

Main article: National Credit Union Share Insurance Fund

See also: Deposit insurance

The National Credit Union Share Insurance Fund (NCUSIF) is the federal fund created by Congress in 1970 to insure member's deposits in federally insured credit unions. On July 22, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law and included permanently establishing NCUA’s standard maximum share insurance amount at $250,000. All deposit insurance resources reflect this higher level of coverage.

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

Mycreditunion.gov

On March 9, 2011, Board Chairman Debbie Matz unveiled MyCreditUnion.gov, 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.

The following year, NCUA launched a free and fun youth microsite, Pocket Cents, as part of the agency’s ongoing efforts to promote financial literacy. The microsite offers youth access to tools and information designed to teach positive financial habits.

See also

• Credit Union National Association
• NCUA Corporate Stabilization Program
• NCUA v. First National Bank & Trust

External links

• Official website
• Search for NCUA Individual Credit Union Data
• NCUA Share Insurance Calculator
• MyCreditUnion.Gov
• Pocketcents