Celebrating International Credit Union Day at USSFCU
Admin
Today, October 16, marks the 77th annual celebration of International Credit Union Day!
"International Credit Union (ICU) Day® celebrates the spirit of the global credit union movement. The day is recognized to reflect upon the credit union movement's history, promote its achievements, recognize hard work and share member experiences."
(credit: https://www.woccu.org/meetings_and_events/icuday)
Today, United States Senate Federal Credit Union celebrates the core philosophy of People Helping People and People Over Profit that ties this movement together. At our Hart and Bowman branches we have displayed the history of the credit union movement as well as our own 90 year history of member-driven service and financial innovation for our members to learn more about our dedication to their financial success.
Credit Unions: A History of Community and Ownership
An idea begins in 19th century Europe: that people could pool their money and make loans to each other – the precursor to the modern credit union.
1844 — The Rochdale Society of Equitable Pioneers in England found the first of these cooperatives.
1850 — Hermann Schulze-Delitzsch and Friedrich Wilhelm Raiffeisen create the first true credit unions in Germany, moved by the devastating crop failures and famine in 1846-1847.
1901 — The idea travels west to North America with Alphonse Desjardins who establishes the first Canadian credit union in Lévis, Quebec.
A Brief History of Credit Unions in the United States
Origins
April 6, 1909 — St. Mary's Cooperative Credit Association, the first U.S. credit union, opens in Manchester, New Hampshire.
Massachusetts Bank Commissioner Pierre Jay and wealthy Boston merchant Edward A. Filene join forces to enact the Massachusetts Credit Union Act, the first general statute for establishing credit unions in the United States.
Development
The Credit Union National Extension Bureau, an association focused on forming new credit unions, enacting state laws to charter credit unions, and promoting the philosophy of credit unions is organized. Between 1921 and 1935, 38 states and the District of Columbia enact credit union laws.
The Great Depression
June 26, 1934 — President Franklin Delano Roosevelt signs the Federal Credit Union Act into law, allowing for federal credit unions across the country. The newly created Federal Credit Union Division is placed in the Farm Credit Administration, the agency responsible for addressing the financial problems facing rural America due to the ongoing economic crisis.
Oct. 1, 1934 — Morris Sheppard Federal Credit Union in Texarkana, Texas, becomes the first federally chartered credit union.
Expansion
Growth surged as credit unions served new communities and industries.
With the passage of the Revenue Act of 1951, federal and state-chartered credit unions are granted an exemption from the federal income tax.
By 1952, the number of federal credit unions grows to nearly 6,000 with more than 2.8 million members
By the end of 1960, there were 9,905 federal credit unions with 6.1 million members and $2.7 billion in assets.
Regulatory Support and Growth
1970 — Congress creates the National Credit Union Administration as an independent agency to charter and supervise federal credit unions. The National Credit Union Share Insurance Fund is also formed, insuring share deposits at federally insured credit unions up to $20,000. Until this point, credit unions had operated without federal deposit insurance.
1974 — Legislation increases insurance coverage on credit union member share deposits to $40,000.
1979 — A three-member Board replaces the NCUA Administrator as the governing body for the agency after Congress updates the Federal Credit Union Act. Share insurance coverage increases to $100,000 making it equal to the amount of deposit insurance coverage for banks provided by the Federal Deposit Insurance Corporation.
1981 — More than 7,000 groups join existing credit unions under NCUA's new multiple select-employee group policy. Membership reaches 28.6 million. Credit union savings rise 20.7 percent, the number of loans grows 17.2 percent and assets increase 19.8 percent during the year. The credit union system's total assets surpass $100 billion.
1990 — By the end of 1990, the credit union system has 12,891 federally insured credit unions, $223 billion in assets and 61 million members.
The Great Recession
Oct. 3, 2008 — President George W. Bush signs the Emergency Economic Stabilization Act, creating the $700 billion Troubled Asset Relief Program, and temporarily raises FDIC and the NCUA deposit insurance coverage from $100,000 per depositor to $250,000 per depositor through Dec. 31, 2009.
July 21, 2010 — President Barack Obama signs into law the Dodd-Frank Wall Street Reform and Consumer Protection Act that made permanent the $250,000 insurance protection for shares and deposits.
Oct. 4, 2010 — The NCUA hires national personal finance expert Suze Orman as part of a national public information campaign to inform credit union members and the public about the safety of credit union share deposits insured by the NCUA. During the campaign, more than 190 million Americans learn that federally insured credit unions are a safe place to save.
Learn more about our own history at USSFCU on our webpage here.
