National Association of Federal Credit Unions (NAFCU)

What Is the National Association of Federal Credit Unions (NAFCU)?

The National Association of Federal Credit Unions (NAFCU) is an industry trade group established in 1967 to address the interests of federal credit unions, and advance the achievement and proficiency of the industry. Its participation is comprised of both large and small credit unions. NAFCU addresses 72% of total federal credit union (FCU) assets and 51% of all FICU assets. NAFCU's enrollment incorporates north of 180 federally-safeguarded state chartered credit unions (FISCUs). Its activities incorporate addressing, illuminating, teaching and helping its individuals with respect to industry issues. Settled in Arlington, Va., one of its primary purposes is to influence the laws and regulations influencing federal credit unions.

Grasping the National Association of Federal Credit Unions (NAFCU)

The National Association of Federal Credit Unions (NAFCU) is a trade group for federal credit unions. Federal credit unions are like banks, however are owned by their individuals and are organized under federal as opposed to state law. They are regulated by the National Credit Union Administration, and individuals' deposits are protected by the National Credit Union Share Insurance Fund, which is like FDIC insurance.

The Federal Credit Union system was laid out by the Federal Credit Union Act in 1934 to advance savings and the financing of homeownership and other useful purposes. Credit Unions that are recognized by the federal government through the National Credit Union Administration (NCUA), an independent federal agency, are tax exempt under Section 501(c)14 of the United States' Internal Revenue Code. However federal credit unions don't earn income and pay no corporate income tax, they are required to pay fees to fund regulatory capabilities and deposit insurance. Federal credit unions are likewise required to report their finances to the NCUA no less than one time each year, however they additionally might be required to report at least a time or two every year.

Needs of the National Association of Federal Credit Unions

The NAFCU was shaped in 1967, and its most memorable major policy victory was the foundation of the National Credit Union Share Insurance Fund, which is the deposit insurance program for credit unions. The next big policy fight for the NAFCU was during the 1990s, when the organization fended off efforts to roll back deposit insurance for credit unions. It likewise looked into the Dodd-Frank financial reform legislation, fighting efforts to make credit unions subject to oversight by the Consumer Financial Protection Bureau. The National Association of Federal Credit Unions contended that due to credit unions' non-benefit and part owned structure, they don't merit a similar level of examination concerning benefit banks, and that compliance with CFPB regulations would be unduly oppressive.