Passage Of Share Insurance Increase To $250,000

Alexandria , Va. , October 2, 2008 – NCUA Chairman Michael E. Fryzel expressed his appreciation today for a key provision of the compromise economic stabilization legislation approved by the U.S. Senate yesterday evening.

The measure, passed by the Senate, includes a temporary increase in insurance limits for accounts backed by the National Credit Union Share Insurance Fund (NCUSIF), increasing share insurance coverage from $100,000 to $250,000. The increase is effective from the date of enactment through December 31, 2009. The boost in insurance coverage is the same as that provided for the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits.

The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of nearly 89 million account holders in all federal credit unions and the majority of state-chartered credit unions. NCUA is funded by credit unions, not federal tax dollars.

-NCUA-