National Credit Union Administration (NCUA)

What is the National Credit Union Administration?

The National Credit Union Administration sanctions, manages and monitors generally federal credit unions.
The overall mission of the NCUA is to guarantee a safe, secure and confided in credit union system through its oversight and management. It additionally offers data on credit unions to consumers on its website, MyCreditUnion.gov.

More profound definition

The NCUA is a U.S. government agency established in 1970. It's responsible for just about 6,000 credit unions in the U.S. — with just about 105 million account holders, more than $1.3 trillion in assets and more than $847 billion in net loans — to guarantee they are functioning appropriately and following federal regulations.
While that is a difficult task, the agency has another major function. The NCUA deals with the National Credit Union Share Insurance Fund, safeguarding the deposits of the account holders in all federal credit unions and by far most of state-sanctioned credit unions.
Notwithstanding overall monitoring and regulation, the NCUA likewise offers a wide assortment of services to credit unions to assist them with functioning.
The NCUA is represented by a three-part board designated by the president. The president additionally picks who fills in as director. Board individuals serve six-year terms, despite the fact that individuals frequently stay until their replacements are confirmed and sworn in.
The agency works out of the five regional offices, in Albany, New York; Alexandria, Virginia; Austin, Texas; Tempe, Arizona, and Atlanta.

National Credit Union Administration model

In 2008 and 2009, the financial crisis put pressure on credit unions as it did on banks. Five of the biggest wholesale corporate credit unions became bankrupt subsequent to investing in troubled mortgage-backed securities.
In response, the NCUA protected their mortgage-backed securities in the wake of liquidating the five failed credit unions.
Furthermore, it worked with the Treasury Department and Congress to lay out a fund to settle the country's credit unions during and after the crisis, and to ensure that services kept on being given to consumer credit unions.

Features

• Credit unions and banks offer comparative financial products, similar to mortgages, vehicle loans, and savings accounts, however credit unions are not-for-benefit institutions, in contrast to banks.
• The National Credit Union Administration (NCUA) directs the quality and operations of thousands of federal credit unions.
• The Federal Deposit Insurance Corporation (FDIC) is the equivalent of the NCUA for banks.