National Credit Union Administration

From Wikipedia, the free encyclopedia - View original article

National Credit Union Administration
US-NationalCreditUnionAdmin-Seal.svg
Official seal
Agency overview
FormedMarch 10, 1970
Preceding AgencyBureau of Federal Credit Unions
JurisdictionFederal government of the United States
HeadquartersAlexandria, Virginia
 United States
Employees1,179 (March 2012)[1]
Annual budget$251.4 million (2013)[2]
Agency executivesDebbie Matz[3], Chairman
Michael E. Fryzel, Board Member
Rick Metsger, Board Member
Websitencua.gov
 
  (Redirected from NCUA)
Jump to: navigation, search
National Credit Union Administration
US-NationalCreditUnionAdmin-Seal.svg
Official seal
Agency overview
FormedMarch 10, 1970
Preceding AgencyBureau of Federal Credit Unions
JurisdictionFederal government of the United States
HeadquartersAlexandria, Virginia
 United States
Employees1,179 (March 2012)[1]
Annual budget$251.4 million (2013)[2]
Agency executivesDebbie Matz[3], Chairman
Michael E. Fryzel, Board Member
Rick Metsger, Board Member
Websitencua.gov

The National Credit Union Administration (NCUA) is the independent federal agency created by the United States 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 96 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. As of September 2013, there were 6,620 federally insured credit unions, with assets totaling more than $1 trillion, and net loans of $631.5 billion.

Organization[edit]

The NCUA is governed by a three-member board appointed by the President of the United States and confirmed by the Senate. The President also chooses who will serve as Chairman.[4] Board members serve six-year terms, although members often remain until their successors are confirmed and sworn in.[4]

The NCUA is administered through five regional offices, each responsible for specific states and territories.[2]

RegionHeadquartersStates/territories
Region IAlbany, NYConnecticut, Maine, Massachusetts, Michigan, New Hampshire, New York, Rhode Island, Vermont and Wisconsin
Region IIAlexandria, VADistrict of Columbia, Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia, and West Virginia
Region IIIAtlanta, GAAlabama, Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, North Carolina, Puerto Rico, South Carolina, Tennessee, U.S. Virgin Islands
Region IVAustin, TXColorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wyoming
Region VTempe, AZAlaska, Arizona, California, Guam, Hawaii, Idaho, Nevada, Oregon, Utah, Washington

History[edit]

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[edit]

The growth in credit unions resulted in an overhauling of the Bureau of Federal Credit Unions to form the modern independent federal agency that regulates the industry under the present day title.

In 1970, the renaming to National Credit Union Administration was made possible in part 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 with the addition of the Central Liquidity Facility, the lender of last resort for all 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[edit]

The high interest rates and unemployment in the early 1980s brought insurance losses. The NCUSIF experienced strain, and credit unions lobbied Congress to recapitalize the Fund. 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. In 1991, when equity level dipped below 1.23 percent, the Board charged credit unions a premium to insure deposits. 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 H.R. 1151, the Credit Union Membership Access Act, opened up membership eligibility to include much larger, loosely defined groups.[5]

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[edit]

During the 1990s and into the beginning of the 21st century, U.S. credit unions continued to develop as a whole. The NCUSIF also continued 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. As a result, the Board charged NCUSIF premiums in 2009 and 2010.

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:

In addition to the corporate credit union crisis, NCUA dealt with the failure of a number of consumer-owned credit unions 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 stepped 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.”[6]

Insurance coverage[edit]

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

The National Credit Union Share Insurance Fund (NCUSIF) is the federal fund created by the United States Congress in 1970 to insure members' 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.[7]

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

Mycreditunion.gov[edit]

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 one, and even how to start a credit union.[8]

The following year, NCUA launched a microsite, Pocket Cents, as part of the agency’s ongoing efforts to promote financial literacy. The microsite offers people of all ages access to tools and information designed to teach positive financial habits.[9]

See also[edit]

References[edit]

  1. ^ FedScope[dead link]
  2. ^ a b "Industry At A Glance". National Credit Union Administration. Retrieved March 4, 2013. 
  3. ^ "Deborah Matz Sworn-in as NCUA Chairman". Press Release. National Credit Union Administration. August 24, 2009. Retrieved July 3, 2012. 
  4. ^ a b Mark, Claude R. (2008-07-03). "Johnson to Stay in NCUA Chairmanship till August". Credit Union Times (Highline Media). Retrieved 2008-07-07. 
  5. ^ "The 6 Months That Changed Everything". Credit Union Journal XVII (8): 15–19. February 25, 2013. 
  6. ^ "retrieved on June 25, 2012". Ncua.gov. Retrieved 2012-12-22. 
  7. ^ "Share Insurance Overview". NCUA.gov. Retrieved December 22, 2012. 
  8. ^ "Matz Launches NCUA's Mycreditunion.gov". National Credit Union Administration. Retrieved 2011-03-09. 
  9. ^ "NCUA Unveils "Pocket Cents," a New Financial Literacy Website for Kids". Ncua.gov. Retrieved December 22, 2012. 

External links[edit]