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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.
Analysis
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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News
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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.

Evaluating Loan Participation Programs

08-CU-26 / November 2008

Evaluating Loan Participation Programs

To

Federally Insured Credit Unions

Subject

Participations

Status

Active

To

Federally Insured Credit Unions

Subj

Evaluating Loan Participation Programs

Encl

Dear Board of Directors:

Properly managed loan participation programs can be beneficial to both selling and buying credit unions. Loan participation sales may provide selling credit unions with a mechanism to manage interest rate, liquidity, and credit risks as well as an enhanced ability to serve members. Buying credit unions may benefit from balance sheet diversification and increased revenue.

Despite the benefits of loan participation programs, there are potential risks. A credit union should perform a comprehensive risk assessment before beginning loan participation activities. Due diligence is a key factor in assuring risks are identified and mitigated.

The enclosed guidance and questionnaire regarding evaluating loan participation programs were provided to NCUA field staff in November 2008.

If you have any questions or concerns, please contact your NCUA Regional Office or State Supervisory Authority.

Sincerely,
/s/
Michael E. Fryzel
Chairman

Enclosures

Last modified on

11/14/24