National Credit Union Administration


Also found in: Financial, Acronyms, Wikipedia.

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 <www.ncua.gov> (accessed July 28, 2003).

U.S. Government Manual Website. Available online at <www.gpoaccess.gov/gmanual> (accessed November 10, 2003).

Cross-references

Credit; Credit Union.

Mentioned in ?
References in periodicals archive ?
The National Credit Union Administration said it has made no decisions about the long-term future of Chetco.
About NCUA The National Credit Union Administration (NCUA) is the independent federal agency that regulates, charters and supervises federal credit unions.
10 Most Profitable Federal Credit Unions Ranked by net income for 2010 1 Arkansas FCU, Jacksonville $5,246,876 2 Telcoe FCU, Little Rock $3,733,912 3 Arkansas Superior FCU, Warren $767,395 4 Arkansas Best FCU, Fort Smith $523,887 5 Pine FCU, Pine Bluff $335,811 6 Timberline FCU, * Crossett $317,972 7 Arkansas Employees FCU, Little Rock $313,250 8 Mil-Way FCU, Texarkana $271,319 9 Hurricane Creek FCU, Benton $177,713 10 Baptist Health FCU, Little Rock $156,663 Source: National Credit Union Administration * Formerly Crossett Paper Mills Employees FCU
the National Credit Union Administration, the Office of the Comptroller of the Currency and the Office of Thrift Supervision--to provide this additional guidance on applying FASB Statement on Standards no.
The interim final rules are being issued by 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.
Open since 1962, EFCU was approved by the National Credit Union Administration to broaden its membership to the nonmilitary-affiliated community of the Antelope Valley.
These agencies are the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), Office of Thrift Supervision (OTS), National Credit Union Administration, Securities and Exchange Commission, and the FTC.
Among those honored guests for the recent celebration in Norridge was Michael Fryzel, former chairman of the National Credit Union Administration.
The National Credit Union Administration said that the suit is related to USD566m in mortgage securities sold to two wholesale credit unions that eventually had to be closed and taken over by the government.
The FFIEC BSA/AML Examination Manual was developed by the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the Office of Thrift Supervision (OTS) (collectively referred to as the federal banking agencies) in collaboration with the Financial Crimes Enforcement Network (FinCEN), the delegated administrator of the BSA.
the National Credit Union Administration and the Office of the Comptroller of the Currency issued final joint guidance to help insured depository institutions address concerns federal and state bank regulators, consumers, financial institutions and their trade representatives have raised about overdraft protection programs (www.
The National Credit Union Administration recently lifted a cease-and-desist order against Northeast Arkansas Federal Credit Union of Blytheville.

Full browser ?