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About
Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
Regulation & Supervision
Regulation & Supervision
The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
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Analysis
The NCUA’s economists and analysts compile data on the credit union system’s financial performance, merger activity, changes in credit union chartering and fields of membership, as well as broader economic trends affecting credit unions. Users can find information on a single credit union or analyze broader nation-wide trends.
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Support Services
The NCUA provides a number of support services to the credit union system, such as providing training, grants and loans, chartering, and field-of-membership services; maintaining the health and stability of Share Insurance Fund; managing the assets of failed credit unions; and providing emergency liquidity.
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Consumers
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Cybersecurity Resources
Cybersecurity Resources
Cyberattacks and cybersecurity vulnerabilities pose significant risks to the financial system. Because of vulnerabilities within the credit union industry and the broader financial system to potential cyberattacks, cybersecurity is one of the NCUA’s top supervisory priorities and a top-tier risk under the agency’s enterprise risk-management program.

Safekeeping of Investments

08-0917 / October 2008

Safekeeping of Investments

Subject

Investments

Historic Status

Non-historic

Dear Mr. Pearlman:

You have asked if a wholly-owned subsidiary of a registered bank holding company is eligible to act as an investment safekeeper for a federal credit union (FCU). The answer to your question is yes.

NCUA’s investment rule permits an FCU to have its investments and repurchase collateral held by a safekeeper that is regulated by the Securities and Exchange Commission, a federal or state depository institution regulator, or a state trust company regulator. 12 C.F.R. §703.9(b). As you have noted, bank holding companies and their subsidiaries are subject to regulation and supervision by the Federal Reserve. 12 C.F.R. Part 225. Other requirements on FCUs using safekeepers include: board of director approval of the safekeeper and a written agreement obligating the safekeeper to exercise, at least, ordinary care; obtaining and reconciling monthly a statement of investments and collateral held in safekeeping; and analyzing annually the safekeeper’s ability to fulfill its custodial responsibilities. 12 C.F.R. §§703.9(a), (c)-(d).

Please feel free to contact Staff Attorney Ross Kendall or me with any questions about this opinion. If you have questions pertaining to a particular credit union client’s compliance with these requirements, we suggest you or your client consult directly with the credit union’s NCUA examiner or the appropriate NCUA regional office.

Sincerely,

/S/

Sheila A. Albin
Associate General Counsel

Last modified on

11/14/24