National Credit Union Administration (NCUA)
The National Credit Union Administration (NCUA) is the independent federal agency that regulates charters and supervises 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 (NCUSIF), insuring the deposits of nearly 92 million account holders in all federal credit unions as well as the overwhelming majority of state-chartered credit unions.
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 a premium when the Fund dropped to a 1.25 percent equity ratio.
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 was to create a system of not-for-profit cooperatives that promote thrift and thwart usury.
Region | Headquarters | States |
Region I | Regional Director National Credit Union Administration 9 Washington Square Washington Avenue Extension Albany, NY 12205 Telephone: 518-862-7400 Fax: 518-862-7420 | Connecticut, Massachusetts, Maine, Michigan, New Hampshire, Nevada, New York, Rhode Island, and Vermont |
Region II | Regional Director National Credit Union Administration 1775 Duke Street Suite 4206 Alexandria, VA 22314-3437 Telephone: 703-519-4600 Fax: 703-519-4620 | California, District of Columbia, Delaware, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia |
Region III | Regional Director National Credit Union Administration 7000 Central Parkway Suite 1600 Atlanta, GA 30328 Telephone: (678) 443-3000 Fax: 678-443-3020 | Alabama, Florida, Georgia, Indiana, Kentucky, Mississippi, North Carolina, Ohio, Puerto Rico,South Carolina, Tennessee, and Virgin Islands |
Region IV | Regional Director National Credit Union Administration 4807 Spicewood Springs Rd. Suite 5200 Austin, Texas 78759 Telephone: 512-342-5600 Fax: 512-342-5620 | Arkansas, Iowa, Illinois, Kansas, Louisiana, Minnesota, Missouri, North Dakota, Nebraska, Oklahoma, South Dakota, Texas and Wisconsin |
Region V | Regional Director National Credit Union Administration 1230 West Washington Street, Suite 301 Tempe, AZ 85281 Telephone: 602-302 | Alaska, Arizona, Colorado, Guam, Hawaii, Idaho, Montana, New Mexico, Oregon, Utah, Washington, and Wyoming |
NCUA has a full-time, three-member board appointed by the President of the United States and confirmed by the Senate. No more than two board members can be from the same political party, and each member serves a staggered six-year term.
Management Structure
- Chairman
- Office of the Board
- Office of Executive Director
- Office of General Counsel
- Office of Inspector General
National Credit Union Share Insurance Fund
The NCUA is an independent agency of the United States Government. NCUA regulates, charters, and insures the nation’s federal credit unions. In addition, NCUA insures state-chartered credit unions that desire and qualify for federal insurance. In some states, state-chartered credit unions are required by state law to be federally insured.
The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), which is backed by the full faith and credit of the United States Government. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person Board. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC). This brochure gives a more detailed explanation of your insurance coverage.
Credit unions that are insured by the NCUSIF must display in their offices the official NCUA insurance sign, which appears on the cover of this brochure. All federal credit unions must be insured by NCUA, and no credit union may terminate its federal insurance without first notifying its members.