A Statement on Credit Unions in Texas from Dick Ensweiler, President and CEO, Texas Credit Union League
Core Fact: The conservatorship of two wholesale credit unions will not have an impact on funds of credit union members - nor deposits of credit unions in their wholesale system.
Credit union members across the state are not directly impacted by this action, their deposits remain insured to at least
Here are some important facts about credit unions in
Credit unions in the state are very well capitalized. Our capital cushion is stronger than most banks. As an industry, our average capital-to-assets ratio is more than 10%. That's considerably higher than the 7% industry standard for being "well capitalized" and higher than the banking industry's average of about 9%. This 10% capital means credit unions are well positioned to absorb the costs of this action by the agency (which intends to charge higher deposit insurance premiums) with minimal outward impact on our members.
Loan growth statistics make this clear
Further Background: Corporate credit unions operate in the capital markets and hold highly rated, invest grade securities. But like so many others in those markets, they have seen the value of their investments decline in the current economic downturn, resulting in some actual losses. According to the NCUA and press accounts, in the case of these two corporate credit unions that were written about in the press, the losses were significant enough so that the government had to step in.
For more about federal savings insurance at credit unions, see the "America's Credit Unions" website at www.creditunion.coop.
To determine how much of your savings at your credit union is covered by federal insurance, visit the NCUA insurance calculator at http://webapps.ncua.gov/ins/
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The Texas Credit Union League is the official trade association for credit unions within the
SOURCE Texas Credit Union League