Bureau of Federal Credit Unions
Encyclopedia
The Bureau of Federal Credit Unions was a federal agency in the United States
that supervised and chartered federal credit union
s from 1934 until 1970. The Bureau was created through the Federal Credit Union Act
as part of the New Deal
. It was self-financing and did not receive appropriations from general Treasury
funds. In 1970, the Bureau was replaced by the National Credit Union Administration
(NCUA).
into law as part of the New Deal
. The Act sought to promote thrift in the aftermath of the Great Depression
and allowed the establishment of federally chartered credit union
s in the United States as part of the Federal Credit Union System.
Responsibility for administration of the Act shifted several times over the years. Initially, the Farm Credit Administration
was responsible. Administration of the Act was transferred to the Federal Deposit Insurance Corporation
(FDIC) in 1942 under Executive Order 9148. On June 29, 1948, Public Law 813 transferred administrative responsibility of the Act to the Federal Security Agency
, which established the Bureau of Federal Credit Unions in the Social Security Administration
. The Bureau migrated to the Department of Health, Education, and Welfare in 1953. By 1962, the Bureau regulated more than 21,000 federally chartered credit unions with assets equal to $3.43 billion.
During the Johnson Administration
, the Bureau conceived of and implemented Project Moneywise, a training program for community leaders in impoverished areas that taught money management alongside cooperative and credit union organization. The Project was funded by a $125,000 grant from Office of Economic Opportunity
as a part of the War on Poverty
.
In March 1970, as the number of credit unions in the U.S. approached 24,000, oversight of credit unions was transferred to the National Credit Union Administration
(NCUA), an independent federal agency.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
that supervised and chartered federal credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
s from 1934 until 1970. The Bureau was created through the Federal Credit Union Act
Federal Credit Union Act
The Federal Credit Union Act is an Act of Congress enacted in 1934. The purpose of the law was to make credit available and promote thrift through a national system of nonprofit, cooperative credit unions...
as part of the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
. It was self-financing and did not receive appropriations from general Treasury
United States Department of the Treasury
The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
funds. In 1970, the Bureau was replaced by the National Credit Union Administration
National Credit Union Administration
The National Credit Union Administration is the United States independent federal agency that supervises and charters federal credit unions...
(NCUA).
History
On June 26, 1934, President Franklin Delano Roosevelt signed the Federal Credit Union ActFederal Credit Union Act
The Federal Credit Union Act is an Act of Congress enacted in 1934. The purpose of the law was to make credit available and promote thrift through a national system of nonprofit, cooperative credit unions...
into law as part of the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
. The Act sought to promote thrift in the aftermath of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
and allowed the establishment of federally chartered credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
s in the United States as part of the Federal Credit Union System.
Responsibility for administration of the Act shifted several times over the years. Initially, the Farm Credit Administration
Farm Credit Administration
The Farm Credit Administration is an independent agency of the Executive Branch of the United States Government. It regulates and examines the banks, associations, and related entities of the Farm Credit System, a network of borrower-owned financial institutions that provide credit to farmers,...
was responsible. Administration of the Act was transferred to the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC) in 1942 under Executive Order 9148. On June 29, 1948, Public Law 813 transferred administrative responsibility of the Act to the Federal Security Agency
Federal Security Agency
The Federal Security Agency was an independent agency of the United States government established in 1939 pursuant to the "Reorganization Act of 1939"...
, which established the Bureau of Federal Credit Unions in the Social Security Administration
Social Security Administration
The United States Social Security Administration is an independent agency of the United States federal government that administers Social Security, a social insurance program consisting of retirement, disability, and survivors' benefits...
. The Bureau migrated to the Department of Health, Education, and Welfare in 1953. By 1962, the Bureau regulated more than 21,000 federally chartered credit unions with assets equal to $3.43 billion.
During the Johnson Administration
Lyndon B. Johnson
Lyndon Baines Johnson , often referred to as LBJ, was the 36th President of the United States after his service as the 37th Vice President of the United States...
, the Bureau conceived of and implemented Project Moneywise, a training program for community leaders in impoverished areas that taught money management alongside cooperative and credit union organization. The Project was funded by a $125,000 grant from Office of Economic Opportunity
Office of Economic Opportunity
The Office of Economic Opportunity was the agency responsible for administering most of the War on Poverty programs created as part of United States President Lyndon B. Johnson's Great Society legislative agenda.- History :...
as a part of the War on Poverty
War on Poverty
The War on Poverty is the unofficial name for legislation first introduced by United States President Lyndon B. Johnson during his State of the Union address on January 8, 1964. This legislation was proposed by Johnson in response to a national poverty rate of around nineteen percent...
.
In March 1970, as the number of credit unions in the U.S. approached 24,000, oversight of credit unions was transferred to the National Credit Union Administration
National Credit Union Administration
The National Credit Union Administration is the United States independent federal agency that supervises and charters federal credit unions...
(NCUA), an independent federal agency.
See also
- Credit unionCredit unionA credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
- Federal Credit Union ActFederal Credit Union ActThe Federal Credit Union Act is an Act of Congress enacted in 1934. The purpose of the law was to make credit available and promote thrift through a national system of nonprofit, cooperative credit unions...
- National Credit Union AdministrationNational Credit Union AdministrationThe National Credit Union Administration is the United States independent federal agency that supervises and charters federal credit unions...