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NCUA Board Member Tanya F. Otsuka Remarks at the 2025 Governmental Affairs Conference
As Prepared for Delivery on March 4, 2025
Thank you to Jim, Carrie, and everyone at America’s Credit Unions for the invitation. Special thanks to the convention center staff and everyone behind the scenes who helped put this event together and are making sure it runs smoothly. And of course, thank you all in the audience for being here.
It is an honor to serve on the Board of the NCUA and to see the great work credit unions are doing for their members every day. The NCUA’s mission of protecting the cooperative credit system is imperative for the millions of families that rely on credit unions for a checking account, buy a car or a home, or save for retirement.
Congress has entrusted the NCUA with the responsibility to protect credit union members and the credit union system, and our ability to do so depends on a strong, independent agency, with dedicated staff who understand the unique role that credit unions play in our economy.
Our independence is critical to maintaining confidence and stability in the credit union system. If you put your money in a credit union with the words “insured by the NCUA” emblazoned on the door, you can trust that you won’t lose your life savings if that credit union fails. Share insurance creates confidence in the credit union system, which not only protects Americans’ hard-earned money, but also helps credit unions attract new members and continue to grow.
"Congress has entrusted the NCUA with the responsibility to protect credit union members and the credit union system, and our ability to do so depends on a strong, independent agency, with dedicated staff who understand the unique role that credit unions play in our economy. Our independence is critical to maintaining confidence and stability in the credit union system."
As the primary federal regulator of credit unions, the NCUA understands the unique characteristics of credit unions and their members. Our independence from politics and distinction from other financial regulators allows us to focus on what matters to the credit union system. It also allows us to maintain long-term stability, mitigate risks and act quickly during a crisis, and prudently manage the share insurance fund.
We must not lose sight of why these guardrails are in place. The NCUA, as we know it today, is the product of one too many dark periods in our nation’s history. During the Great Depression, the stock market crashed, our economy collapsed, and thousands of banks failed, wiping out many Americans’ entire life savings. In response, Congress created independent financial agencies and consumer protections – like deposit insurance – to promote stability and provide a safety net for American families. Congress also encouraged the creation of federal credit unions under the Federal Credit Union Act of 1934, allowing more people of modest means to access affordable credit, secure their savings, and ultimately begin to recover from financial hardship. The credit union movement continued to grow, and in 1970, Congress established the NCUA as an independent agency to charter and supervise federal credit unions and manage the Share Insurance Fund, which extended the deposit insurance safety net to credit union members.
Fast-forward to the 2008 Financial Crisis, when years of deregulation and lax oversight paved the way for risky and unethical financial practices on Wall Street to wreak havoc on our economy. As financial institutions failed, markets crashed, and businesses shuttered, everyday Americans were left holding the bag. Millions of families lost their homes. While credit unions fared better than banks overall, credit unions were not spared. Between 2008 and 2012, the NCUA oversaw over 130 involuntary liquidations and mergers. To create a more resilient financial system, Congress passed the Dodd-Frank Act, which put in place higher standards for the largest banks and financial companies, established stronger consumer protections, and increased the maximum share insurance for credit union members.
"That is why credit unions must continue to show the American people what the credit union difference means and live up to the mantra of 'people helping people.' . . . Too much is at stake to be seen as no different than a bank or a tech company or any other financial institution. The credit union difference is the ultimate competitive advantage."
It is no coincidence that credit unions were not the catalyst for our past financial crises. That is a reflection of the credit union ethos. From its inception, the credit union movement has sought to advance access for all and prioritize the economic interests of its members. Credit unions are an integral part of our financial system, serving over 142 million consumers across the United States. Credit unions are often a lifeline for the communities they support. And for many Americans, they are the only source of access to affordable and equitable financial products and services.
That is why credit unions must continue to show the American people what the credit union difference means and live up to the mantra of “people helping people.” As not-for-profit, mission-driven institutions, credit unions must embrace the importance of strong consumer protection, lower cost financial products, and service over profit. Too much is at stake to be seen as no different than a bank or a tech company or any other financial institution. The credit union difference is the ultimate competitive advantage.
Over the past year, I have focused on small credit unions and promoting and preserving minority depository institutions, and we have made sure that credit unions who have expanded to underserved areas are meeting the needs of those communities. There is much more we would like to achieve, including dedicating more time and staff to support smaller credit unions and looking at proposing a new rule to reimburse credit union board members for childcare and dependent expenses. To accomplish our shared goals, we need an independent regulator designed to regulate credit unions. That is the NCUA.
The NCUA is critical to protecting the millions of members who rely on us to safeguard their hard-earned money. By focusing on our mission, we can ensure credit unions are well positioned for the future and able to meet their members’ financial needs in good times and bad. Ultimately, our society benefits from a healthy credit union system that provides access to affordable financial services to those of modest means. Protecting that system is central to why we are all here today. I hope we never forget that. Thank you.
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