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About
Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
Regulation & Supervision
Regulation & Supervision
The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
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Analysis
The NCUA’s economists and analysts compile data on the credit union system’s financial performance, merger activity, changes in credit union chartering and fields of membership, as well as broader economic trends affecting credit unions. Users can find information on a single credit union or analyze broader nation-wide trends.
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Support Services
The NCUA provides a number of support services to the credit union system, such as providing training, grants and loans, chartering, and field-of-membership services; maintaining the health and stability of Share Insurance Fund; managing the assets of failed credit unions; and providing emergency liquidity.
Consumers
Consumers
The NCUA works to protect credit union members and consumers, raise awareness of potential frauds, facilitate access to affordable financial services, and educate consumers on the importance of savings and how they can improve their financial well-being.
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Cybersecurity Resources
Cybersecurity Resources
Cyberattacks and cybersecurity vulnerabilities pose significant risks to the financial system. Because of vulnerabilities within the credit union industry and the broader financial system to potential cyberattacks, cybersecurity is one of the NCUA’s top supervisory priorities and a top-tier risk under the agency’s enterprise risk-management program.

Concentration Risk

10-CU-03 / March 2010

Concentration Risk

To

Federally Insured Credit Unions

Subject

Concentration Risk

Status

Active

To

Federally Insured Credit Unions

Subj

Concentration Risk

Encl

Supervisory Letter – Concentration Risk

Dear Board of Directors:

NCUA examiners were recently provided guidance addressing the evaluation of concentration risk. This letter provides all federally insured credit unions with the same guidance via the attached Supervisory Letter.

I encourage credit union officials to understand the concentration risk in their credit union’s current balance sheet, as well as how strategic plans may affect the level of concentration risk; and to ensure their risk management practices are commensurate with the level of risk.

Also, please refer to the recent Advisory on Interest Rate Risk Management issued by the Federal Financial Institutions Examination Council in January 2010 for additional guidance.

I encourage credit unions to open a dialogue with examiners to consider the suitability of existing risk management practices given the risks inherent in any concentration.

If you have any questions related to this letter, you should contact your regional office, district examiner, or state supervisory authority.

Sincerely,
Debbie Matz
Chairman

Enclosures

Supervisory Letter – Concentration Risk

Last modified on

05/06/24