FDIC vs NCUA

The National Credit Union Administration (NCUA) and the Federal Deposit Insurance Corporation (FDIC) are financial institutions that deal with two different aspects. While the NCUA is a federal agency that overlooks the credit unions, the FDIC is an independent agency that oversees and insures banks. The FDIC is the agency that deals with regulating the banks in the US.

The FDIC came into being on January one, 1934 after the US Congress passed the Glass-Steagall Act in 1933. The NCUA came into existence in 1934 on the basis of the Federal Credit Union Act.

The NCUA is a body that comes out with charters for credit unions, sets credit union policies and insures the deposits. The NCUA’s main goal is to keep the credit unions strong and intact and also to protect the depositors who deposit the money in the credit unions. It also oversees that the credit unions remain secure and safe.

The FDIC aims at building public confidence in the banking system. It provides insurance to depositors and also takes pre-emptive measures for minimizing bank’s failures. If a bank fails to pay the depositor, the FDIC makes the payment.

The Federal Deposit Insurance Corporation is funded by the member banks, which has to meet reserve requirements and specific liquidity. The examiners visit the member banks and check regularly if they are complying with the guidelines. If a member bank fails in this, the DIC has the authority to change the management of the bank or go for corrective measures.

The various financial institutions in the US own the credit unions. Those who are members of the NSUA are able to engage in various financial activities like depositing funds or borrowing money or participating in investments. While a bank does not share its profit with the depositors, the credit union shares the profit with the members.

Another difference that is noticed between FDIC and NSUA is that the latter are safer to invest money. Moreover, the NSUA are community oriented than the banks.

Summary
1.The NCUA is a federal agency that overlooks the credit unions. The FDIC is an independent agency that oversees and insures banks.
2.The FDIC came into being on January one, 1934 after the US Congress passed the Glass-Steagall Act in 1933. The NCUA came into existence in 1934 on the basis of the Federal Credit Union Act.
3.The NCUA oversees that the credit unions remain secure and safe. The FDIC aims at building public confidence in the banking system