National Credit Union Administration

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National Credit Union Administration

The National Credit Union Administration (NCUA) is responsible for chartering, insuring, supervising, and examining federal credit unions (FCUs) and for administering the National Credit Union Share Insurance Fund. The NCUA also manages the Central Liquidity Facility, a mixed-ownership government corporation, the purpose of which is to supply emergency loans to member credit unions. A credit union (CU) is a financial cooperative that aids its members by improving their economic situation through encouraging thrift among its members and providing them with a source of credit for provident purposes at reasonable rates of interest. Federal CUs serve occupational, associational, and residential groups, thus benefiting a broad range of citizens throughout the country.

The NCUA was established by an act of March 10, 1970 (84 Stat. 49, 12 U.S.C.A. 1752) and reorganized by an act of November 10, 1978 (92 Stat. 3641, 12 U.S.C.A. 226 note), as an independent agency in the Executive Branch of the federal government. The NCUA regulates and insures all FCUs and insures state-chartered CUs that apply for and qualify for share insurance. As of 2003, total assets of federally chartered CUs exceeded $172 billion, and the assets of all federally insured state-chartered CUs exceeded $104 billion.

Programs and Activities

The NCUA grants FCU charters to groups sharing a common bond of occupation or association or to groups within a well-defined neighborhood, community, or rural district. A preliminary investigation is made to determine if certain minimum standards are met before granting a federal charter.

Supervisory activities are carried out through examiner contacts and through periodic policy and regulatory releases from the administration. The administration also maintains an early warning system designed to identify emerging problems as well as to monitor operations between examinations.

The administration conducts periodic examinations of federal credit unions to determine their solvency and compliance with laws and regulations and to assist credit union management in improving operations.

The act of October 19, 1970 (84 Stat. 994, 12 U.S.C.A. 1781 et seq.) provides for a program of share insurance. The insurance is mandatory for federal credit unions and optional for state-chartered credit unions that meet NCUA standards. Credit union members' accounts are insured up to $100,000. The National Credit Union Share Insurance Fund charges each insured credit union a premium of one-twelfth of 1 percent of the total member accounts (shares) outstanding at the end of the preceding calendar year.

High interest rates and insurance losses in the 1980s brought the insurance fund close to insolvency. In 1985, Congress approved a plan that enabled the credit unions to recapitalize the fund. The 1990s were marked by major changes including deregulation, expanded eligibility for membership, mergers, and an increase in member services. In 2001 the NCUA chartered, regulated, and/or insured more than 10,000 credit unions across the United States.

Further readings

National Credit Union Administration. Available online at <> (accessed July 28, 2003).

U.S. Government Manual Website. Available online at <> (accessed November 10, 2003).


Credit; Credit Union.

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Deposits up to $250,000 are insured by the full faith of the federal government through the National Credit Union Administration (NCUA).
10 Most Profitable Credit Unions Ranked by net income for 2011 1 Arkansas Federal Credit Union, Jacksonville $4,436,846 2 Telcoe Federal Credit Union, Little Rock $4,108,124 3 Arkansas Superior Federal Credit Union, Warren $1,334,065 4 Arkansas Best Feder Union, Fort Smith $914,847 5 Pine Bluff Federal Credit Union, Pine Bluff $679,317 6 Timberline Federal Credit Union, Crossett $545,803 7 Mil-Way Federal Credit Union, Texarkana $494,468 8 Northeast Arkansas Federal Credit Union, Blythevil $406,687 9 Subiaco Federal Credit Union $228,814 10 Diamond Lakes Federal Credit Union, Malvern $214,340 Source: National Credit Union Administration
30, according to a report filed with the National Credit Union Administration.
The bulk of the loans the credit union was making were in real estate, according to reports filed with the National Credit Union Administration.
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision (the agencies), and the Conference of State Bank Supervisors asked insured depository institutions on September 1, 2005, to consider all reasonable and prudent steps to assist customers' and credit union members' cash and financial needs in areas affected by Hurricane Katrina.
the National Credit Union Administration, the Office of the Comptroller of the Currency and the Office of Thrift Supervision--will begin employing the manual's procedures in the third quarter of 2005.
the Office of Thrift Supervision, the National Credit Union Administration, and the Securities and Exchange Commission (SEC) to cooperate to adopt comparable and consistent rules regarding the disposal of sensitive consumer report information.
The SEC announcement is one of a series of XBRL initiative which are being put in place by financial regulators around the work including the Inland Revenue and Financial Services Authority in the United Kingdom; Japan's National Tax Agency and Financial Services Authority; the Bank of Spain; Dutch Tax Authority; and the US Federal Financial Industry Examinations Council, which includes the Federal Deposit Insurance Corporation, Federal Reserve Board, Office of Thrift Supervision, National Credit Union Administration and the Office of Comptroller of the Currency.
In light of these changes and the evolution of the credit union industry, GAO evaluated (1) the financial condition of the industry and the deposit (share) insurance fund, (2) the impact of CUMAA on the industry, and (3) how the National Credit Union Administration (NCUA) had changed its safety and soundness processes.
But Cliff Northup of the National Credit Union Administration, a regulatory agency, said credit unions reach more poor people than other financial institutions.
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency and of Office of Thrift Supervision created a series of guidelines to help financial institutions better comply with the provisions set forth in the GrammLeach-Bliley Act of 1999.

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