NATIONAL
CREDIT UNION SHARE INSURANCE FUND
 The National Credit Union
Share Insurance Fund (NCUSIF) is the
federal fund created by Congress in 1970
to insure member's deposits in credit
unions up to the $100,000 federal limit.
Administered by the National Credit Union
Administration, the NCUSIF is backed by
the "full faith and credit" of
the U.S. Government.
How the Fund is financed
The NCUSIF maintains at or near 1.30
percent of federally insured credit union
deposits. By law, federally insured
credit unions maintain 1 percent of their
deposits in the NCUSIF and the NCUA Board can levy a
premium if necessary. Credit unions
voluntarily capitalized the Fund in 1985
by depositing 1 percent of their deposits
into the Fund. Since then, the NCUA Board has charged only
one premium, when three large New England
credit unions failed in 1992
substantially increasing insurance
losses. No federal tax dollars have ever
been placed in the credit union financial
Fund, and non member has ever lost money
insured by the NCUSIF.
Record
low losses, record high earnings
In 1997, the NCUSIF broke success
records. Matching the primarily strong
economy and the good health of credit
unions, the financially sound NCUSIF ---
- Paid
its third consecutive and largest
case dividend -- $108 million;
- Posted
record earnings -- $204 million
before expenses;
- Saw
a record low eight involuntary
liquidations and eight assisted
mergers;
- Ended
1997 at the maximum statutory
equity level of 1.3 percent; and
- Received
Treasury's support for its
operations.
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