🠈  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.

Corporate History

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.

profile page


  1. Wikipedia - National Credit Unition Administration (Drawn 3/18/2023)

Prev ~ ~ Index ~ ~ Next