NCUA is responsible for chartering, insuring, and examining federal credit unions. State regulators have primary supervisory authority over federally insured state- chartered credit unions. They work in cooperation with the NCUA to ensure that these institutions meet safety and soundness standards. In some states, federal deposit insurance is optional for state-chartered credit unions. Year-end 1996, there were 7,152 FCUs and 4,240 state credit unions.
Commercial banks can also be federally or state-chartered.
In 1982, the NCUA issued an interpretive ruling and policy statement that modified the agency's FCU field of membership and chartering policy. This action and the subsequent amendments address multiple-group charters. These credit unions have fields of membership made up of related groups with one common bond or unrelated groups each having its own common bond. The groups may be occupational, associational, or a combination. The NCUA adopted this policy to provide the industry with the flexibility needed to respond to the distressed situations caused by economic conditions.