National Association of Federally-Insured Credit Unions(NAFCU)

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National Association of Federally-Insured Credit Unions(NAFCU)

What Is the National Association of Federally-Insured Credit Unions (NAFCU)?

The National Association of Federally-Insured Credit Unions (NAFCU) is a trade organization created in 1967 to defend the interests of federal credit unions and promote the industry’s prosperity and efficiency. Its members include both major and small credit unions.

NAFCU accounts for 72% of all federal credit union (FCU) assets and 51% of total FICU assets. Over 180 federally insured state-chartered credit unions are members of NAFCU (FISCUs).Its activities include representing, informing, educating, and aiding its members on matters affecting the sector. One of its principal goals, based in Arlington, Va., is to influence legislation and regulations impacting federal credit unions. 12

Understanding the National Association of Federally-Insured Credit Unions (NAFCU)

The National Association of Federally-Insured Credit Unions (NAFCU) is a federal credit union trade association. Federal credit unions, like banks, are owned by its members and operate under federal rather than state law. The National Credit Union Administration regulates them, and members’ savings are insured by the National Credit Union Share Protection Fund, which is akin to FDIC insurance. 3

The Federal Credit Union Act of 1934 created the Federal Credit Union system to encourage savings and the financing of homeownership and other beneficial objectives. Credit unions authorized by the federal government via the National Credit Union Administration (NCUA), an independent federal body, are tax-exempt under Section 501(c)14 of the Internal Revenue Code of the United States.

Despite the fact that federal credit unions do not produce profits and do not pay corporate income tax, they are obligated to pay fees to cover regulatory duties and deposit insurance. Federal credit unions must disclose their finances to the NCUA at least once a year, but they may be forced to report more than once. 45

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Priorities of the National Association of Federally-Insured Credit Unions

The NAFCU was founded in 1967, and its first big policy success was the creation of the National Credit Union Share Insurance Fund, which is the credit union deposit insurance program.

The NAFCU’s next major policy struggle came in the 1990s, when it battled proposals to repeal deposit insurance for credit unions. It also played an active role in the Dodd-Frank financial reform legislation, opposing plans to subject credit unions to Consumer Financial Protection Bureau regulation.

The National Association of Federal Credit Unions contended that since credit unions are non-profit and member-owned, they should not be subjected to the same degree of scrutiny as for-profit banks, and that complying with CFPB standards would be unreasonably costly. 6

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