🠈 National Credit Union Administration 🠊
National Credit Union Administration
Created in 1970, The National Credit Union Administration is a Federal Agency that regulates and insures the credit union industry.
A credit union is a not-for-profit, cooperative, tax-exempt organization. Credit unions often target specific groups. For example the Navy Federal Credit Union targets members of the U.S. Department of Defense.
Some economists hold that since credit unions do not track profit that they are a superior investment vehicle than institutions that track profit. Even more important, since credit unions do not pay taxes, credit unions have an economic advantage over tax-paying banks.
Since a large percent of government employees keep their money in credit unions, credit union banks tend to receive preferred treatment from regulators; However, I find it ironic that people who live off of taxes collected from the people create institutions for themselves that seek to avoid taxation.
People have used cooperative structures to aide financing for centuries. Wikipedia notes that Alphonse Desjardins developed cooperative savings companies in Canada and that a Catholic priest named Monsignor Pierre Hevey created the first US based entity called St. Mary's Cooperative Credit Association in New Hampshire in 1908.
The first institutions were regulated by local and state governments. The push to Federalize banking regulation occurred in the Administration of Franklin Delano Roosevelt.
In school I learned that FDR saved the nation by Federalizing Bank Regulations. The opponents (aka advocates of classical economics) hold that FDR prolonged a market correction into a Great Depression by federalizing banking regulation.
- 1908: The Administration of Theodore Roosevelt commissioned a study commissioned a study that showed rural farmers suffered from lack of access to credit. The act studied rural farmining cooperatives in Europe.
- 1916: The Federal Farm Loan Act, passed during the Wilson administration, created the Federal Farm Loan Board and a network of 12 regional Farm Land Banks which funded the creation farm lending institutions.
- 1929: The Hoover Administration passed the Agricultural Marketing Act in June in an effort to prop up the price of food from farms.
- 1933: The Farm Credit Act created the The Farm Credit Administration and centralized Federal Farm lending programs.
- 1934: FDR signed the Federal Credit Union Act this created a Federal Credit Union System administered by the Farm Credit Administration.
- 1942: Executive Order 9148 transfered contol to the FDIC..
- 1953: The Department of Health, Education, and Welfare took control of the Bureau of Federal Credit Unions.
- 1962: the Bureau regulated more than 21,000 federally chartered credit unions with assets equal to $3.43 billion.
- 1970: Congress created the National Credit Union Administration (NCUA) as an independent agency to oversee credit unions.
1948: Public Law 813 transferred administrative control to to the Federal Security Agency which established the Bureau of Federal Credit Unions.
- Wikipedia - National Credit Unition Administration (Drawn 3/18/2023)
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