Jan 01 1998

Financial Strength: A Comparison of State and Federal Credit Unions

This report examines and compares the financial strength of state credit unions and federal credit unions.

Important questions include, are state-chartered credit unions less safe and sound than federally-chartered credit unions? Or are federally-chartered credit unions on significantly less stable financial footings than state-chartered credit unions?

The report finds that both chartering systems have remarkably similar operating rations and safety and soundness levels. Also included in the report is an examination of National Credit Union Share Insurance Fund losses over fifteen years. This study provides a building-block for future studies on the optimal role of federal and state governments in regulating and supervising credit unions.