Credit unions with state charters and private deposit insurance have state regulators. Credit unions with state charters and federal insurance typically have state examinations, and also may have federal examinations. Those regulatory agencies routinely examine credit unions to make sure they're healthy. Your credit union's safety net is its capital - the sum of undivided earnings, regular reserves, and other reserves. The average varies with asset size, and NCUA monitors the ratio for your protection.
All financial institutions retain some earnings as a cushion.
One sign of a credit union's health is delinquencies - loans with payments more than two months late. High rates suggest a credit union's loan policy may be too liberal. Low rates suggest a loan policy may be too strict. The goal is to avoid extremes. The person the board hires to run the credit union has the title of manager president or chief executive officer.