NC Credit Union League Touts Strength & Soundness of Credit Unions, Share Insurance Fund During Credit Crunch (7/16/2008)

Resources for Credit Unions

America's Credit Unions: Secure, Strong (from CUNA).

NCUA press release concerning strength of NCUSIF (issued July 14, 2008).

Examples of how NCUSIF may protect your members (from the NCCUL Compliance Department) - Registered users only.

NCUA Share Insurance Estimator for members.

Your Insured Funds brochure for members from NCUA. These brochures may be ordered from NCUA at a cost of $14 per 50 copies.  

"The bottom line," said NCCUL President/CEO John Radebaugh, "is that credit unions are strong and well-positioned to serve their three million members in NC. They entered into this economic situation with strong balance sheets, and they will still be in very strong shape when things improve."

Even as North Carolina and the US deal with economic headwinds and tightening credit markets, the NC credit union system remains healthy and well-positioned to serve the needs of its three million members, the NC Credit Union League (NCCUL) said today. The League also noted that the Federal agency that insures member deposits is also in excellent health.

The news came amid increasingly distressing news in much of the financial services sector. NCCUL President/CEO John Radebaugh noted that credit unions remained healthy due to key differences in their structure. "As cooperative financial institutions, credit unions are not reliant upon the capital markets for funding -- but are instead funded through member deposits," he noted. "As the credit crunch hits much of the economy, credit unions by contrast have money that they’re ready to lend out to their members."

Another important contrast benefiting credit unions according to Radebaugh is the continued low level of loan delinquencies. "Credit unions did not make risky loans like others did, and so their loan portfolios are performing well despite the economy," he said.

Radebaugh added that like their counterparts in the banking industry, credit union members enjoy the same level of insurance protection on their deposits. "The National Credit Union share Insurance Fund (NCUSIF) guarantees member deposits up to $100,000, and certain retirement accounts have up to $250,000 in insurance."

The National Credit Union Administration (NCUA), which administers the NCUSIF, said Monday the fund remains well capitalized and that the credit union system nationwide is in good shape. "While there are isolated instances of credit unions encountering difficulties, on the whole the credit union industry is healthy," NCUA Chairman JoAnn Johnson said. "The NCUSIF enters the second half of 2008 secure and well-capitalized."

NCUSIF was created in 1970, and US taxpayers have never had to bail out the credit union system during that time. All of the approximately 110 NC credit unions are part of the share insurance fund.   

"The bottom line," said Radebaugh, "is that credit unions are strong and well-positioned to serve their three million members in NC. They entered into this economic situation with strong balance sheets, and they will still be in very strong shape when things improve."