What is the National Credit Union Administration?

Understanding the National Credit Union Administration

The National Credit Union Administration (NCUA), created as part of the Federal Credit Union Act (1934), administers, charters, examines, and insures credit unions in the U.S. The NCUSIF (National Credit Union Share Insurance Fund) functions like the FDIC (Federal Depositary Insurance Corporation) to protect depositor’s accounts up to $100,000 in the event of a credit union liquidation.

The NCUA “examines” (audits) insured credit unions in the five designated regions of the U.S. to determine the safety and soundness of federally insured institutions. Credit unions deposit 1% of their shares (deposits) with the NCUSIF to ensure sufficient insurance fund balances to handle any emergency payouts required.

Choosing a bank, in this case a credit union, is made easier as financial information is available from the NCUA on every insured institution in the U.S. Selecting a bank or credit union based on this public information further protects your decisions.

A three-person Board, appointed by the President of the U.S., governs the NCUA. The NCUA Board sets policy, recommends changes in credit union regulations, and maintains the integrity and sufficiency of the insurance fund.

The NCUA, like the FDIC and the Fed, maintains the stability of its financial institutions and works to improve the image of all credit unions. Protecting credit union members (consumers) with depository insurance and other regulations, the NCUA helps make credit unions excellent options to satisfy all of your banking needs.