NCUA: Number of Credit Unions Continues Decline, But Membership Is Up (2024)

FAQs

NCUA: Number of Credit Unions Continues Decline, But Membership Is Up? ›

Although the number of federal credit unions continued to decrease, their membership continued to increase. Federally insured credit unions added four million members compared with a year ago, reaching 139.3 million in the fourth quarter of 2023, according to agency statistics.

Credit Union System Performance Data: 2023Q4

As of December 31, 2023, there were 4,604 federally insured credit unions with 139.3 million members. Please direct inquiries about the quarterly credit union performance report to oeacmail@ncua.gov.

Credit Unions are required by law to restrict access to the groups they serve, but many have very simple requirements such as living in an area. A focus on “common bonds” is important in credit unions, which is why fields of membership single out particular groups or communities.

The number of federally insured credit unions declined to 4,604 institutions in the fourth quarter of 2023, a drop of 156 financial institutions from a year ago, the National Credit Union Administration said Tuesday.

Just like banks, credit unions are federally insured; however, credit unions are not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, the National Credit Union Administration (NCUA) is the federal insurer of credit unions, making them just as safe as traditional banks.

He noted that if a credit union does fail, it might be due to incompetent management or theft — there are cases in which employees have absconded with the institution's cash.

The share of U.S. workers who belong to a union has fallen since 1983, when 20.1% of American workers were union members. In 2023, 10.0% of U.S. workers were in a union. Views about the decline in union membership have changed only modestly since last year, when 58% said it was bad for the country.

Union membership peaked in the 1950s at about one-third of the private sector workforce, but is just over 6 percent today. Globalization, technological change, and employer concentration are commonly cited as key factors, eroding union power and increasing employers' bargaining position relative to workers.

Are credit unions also in trouble? ›

National Credit Union Administration (NCUA) credit unions had seven conservatorships/liquidations in 2022 and two so far in 2023. While credit unions have experienced several failures in 2022, there were no Federal Deposit Insurance Corp.

Credit unions are no more immune to crime than the big banks — and with a smaller IT bench they may present a tastier target. In fact, the NCUA has warned against an uptick, in 2023 of crimes such as ransomware, phishing, email scams, and distributed denial-of-service (DDoS) attacks.

First, bankers believe it is unfair that credit unions are exempt from federal taxation while the taxes that banks pay represent a significant fraction of their earnings—33 percent last year. Second, bankers believe that credit unions have been allowed to expand far beyond their original purpose.

No. Credit unions are insured by the National Credit Union Administration (NCUA). Just like the FDIC insures up to $250,000 for individuals' accounts of a bank, the NCUA insures up to $250,000 for individuals' accounts of a credit union.

Progressive Credit Union - You must be recommended by another member. This might be the most unique credit union requirement, and it also seems to be the toughest.

How your money is protected. Money deposited into bank accounts will be safe as long as your financial institution is federally insured. The FDIC and National Credit Union Administration (NCUA) oversee banks and credit unions, respectively. These federal agencies also provide deposit insurance.

In order to achieve those goals, NCUA must regulate all federally insured credit unions, both federal credit unions ("FCUs") and FISCUs, sufficiently to insure that they do not create an undue risk to the NCUSIF or otherwise threaten the stability of the system.

All federal credit unions and the vast majority of state-chartered credit unions are covered by NCUSIF insurance protection. Credit unions that are insured by NCUSIF must prominently display the official NCUA insurance sign. No credit union may terminate its federal insurance without first notifying its members.

One of the only differences between NCUA and FDIC coverage is that the FDIC will also insure cashier's checks and money orders. Otherwise, banks and credit unions are equally protected, and your deposit accounts are safe with either option.

NCUA also operates and manages the National Credit Union Share Insurance Fund (NCUSIF). Backed by the full faith and credit of the U.S. government, the NCUSIF insures the accounts of millions of account holders in all federal credit unions and the vast majority of state-chartered credit unions.