The current recession has certainly made an impact on all individuals and businesses over the past 18 months. While many financial institutions have struggled, credit unions overall have been able to grow and serve their members with the products and services they need. There has been no credit crunch in credit unions - mortgage operations remain strong and credit card practices have held up to close scrutiny.
Member deposits remain safe and sound at credit unions. U of I Employees Credit Union deposits are insured up to $250,000 per member through the National Credit Union Share Insurance Fund (NCUSIF), administered by the National Credit Union Administration (NCUA).
As the credit union industry has been affected by the economy, the NCUSIF has done its job to protect the deposits of members and credit unions. Fortunately, UIECU has historically operated with a safe, sound, and conservative fiscal approach. This approach has allowed UIECU to fulfill its regulatory requirements to contribute to the strengthening of the insurance fund. This provides protection for member deposits and reinforces our commitment to our members and the credit union industry.
Regulators have issued requirements that all federally insured credit unions make additional contributions to the insurance fund to ensure all member deposits are protected. Our compliance with this requirement will eventually result in adjustments to our financial statements, the extent and timing of which is not yet known. These regulatory adjustments are not the result of our credit union’s operations and we do not believe they will have any impact on our ability to serve our membership and continue our strong growth. A more detailed outline of the impact of these requirements is available online at www.uiecu.org.
UIECU continues to experience record levels of membership, deposits, and lending. In today’s economy where financial institutions are rapidly changing, we continue to offer value, guidance, and peace of mind to our members. We are proud of our continued ability to provide financial solutions to our members during these economic times and for years to come.
