From 1934 To 1964 Credit Unions Grew From 39 To 11,200..pdf

The Federal Credit Union Act was signed by President Franklin D. Roosevelt on June 26, 1934, authorizing the formation of federally chartered credit unions in the United States. The law aimed to provide credit to people of small means through a national system of cooperative credit, promoting thrift and stabilizing the credit structure. Credit unions are cooperative associations that offer low-cost credit to members, with only those within the defined field of membership eligible to join. The credit union idea originated in Germany in the mid-19th century and spread to other countries, including the United States, where the first credit union legislation was enacted in Massachusetts in 1909. By the end of 1934, approximately 2,450 credit unions were operating under state laws, with 427,000 members and $40.2 million in assets. Today, federal credit unions number around 11,200, with 73/4 million members, $4.1 billion in assets, and $3.1 billion in outstanding loans. State-chartered credit unions have around 10,600 institutions, with $4.5 billion in assets, 71/2 million members, and $3.5 billion in outstanding loans. The Bureau of Federal Credit Unions issues charters, examines, and supervises federal credit unions, and provides assistance to eligible groups to organize credit unions. The program became self-financing in 1953, with no appropriations made from General Treasury funds since then. The Bureau has traditionally been interested in bringing credit union services to low-income groups, with over 100 federal credit unions operating among such groups.