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

FAQs

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

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

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.

Financial institutions check to see if a past account was “closed for cause,” meaning the bank or credit union shut down the checking account because of something you did. If the report shows you have a record of mismanaging other bank accounts, the institution could refuse to open a new account.

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.

The National Credit Union Administration (NCUA) has issued a warning about a 25% increase in cybersecurity incidents, highlighting the specific threats credit unions will face in 2024, including ransomware, phishing, email scams, and poorly secured IoT devices.

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. Beyond that amount, the bank or credit union takes an uninsured risk.

National Credit Union Administration (NCUA) credit unions had seven conservatorships/liquidations in 2022 and two so far in 2023.

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.

Originally, membership in a credit union was limited to people who shared a common bond. They may have worked in the same industry or for the same company. Or they may have lived in the same community. However, credit unions have loosened the restrictions on membership and often allow the general public to join.

MISHANDLED ACCOUNTS

The closure of the account and/or (b.) The dishonor of any check thereunder which may be presented to the BANK after the closure of the account and/or (c.) Reporting by the BANK of the closure of the account and the reason/s thereof to the BAP.

Who are the top 5 credit unions? ›

The National Credit Union Administration (NCUA) is an independent agency created by the U.S. government to regulate and protect credit unions and their owners. Just like the FDIC, the NCUA insures up to $250,000 to all credit union members and provides protection in the event of a credit union failure.

The National Credit Union Administration (NCUA) charters and supervises federal credit unions and insures savings in federal and most state-chartered credit unions.

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.

Credit unions facing challenges in managing risks, such as credit risk or cybersecurity threats, may find themselves in difficult situations. Demographic Shifts: Changes in demographics, including aging populations and shifting consumer behaviors, can impact the demand for certain financial products and services.

Information Security (Cybersecurity)

The evolving cybersecurity threat landscape poses persistent risks to credit unions. As credit union technology-related operating environments become ever more complex, it is crucial to establish a cybersecurity program that can adapt and evolve to counter these threats effectively.

Some people wonder where the best place to store their money is to protect its value amid economic uncertainty. One way to ensure your money stays safe is to deposit it in a credit union. Credit unions protect members' finances, whatever the market conditions are, including during a recession.

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.

Like banks, which are federally insured by the FDIC, credit unions are insured by the NCUA, making them just as safe as banks.

Community banks and credit unions are attracting a small but growing number of you, study shows. While most of you are still getting your primary credit cards from national banks, a growing number of you are tapping credit unions and community banks for these cards instead, according to a new study.