The Kansas Department of Credit Unions protects Kansas citizens from undue risk by ensuring safe and sound operation of state-chartered credit unions.
“Kansas: a pioneer state in the credit union movement” is an accurate description of credit union development in the state. Several innovations developed in Kansas that are today in practice in state and federal credit unions.
In 1929, the statute governing credit unions approved by the Kansas legislature provided chartering authority by the secretary of state. Topeka Federal Employees’ Credit union chartered on July 11, 1929 as the first credit union. Records show 8 credit unions existed in 1930, 97 in 1940 and 96 in 1950.
Kansas Corporate Credit Union chartered in 1951 as the first corporate credit union in the United States. The purpose of this corporate was to provide liquidity to credit unions by identifying credit unions with excess funds that could be used by credit unions that needed funds to make loans.
HB 1636 in 1968 established the department of credit unions overseen by the administrator and the credit union council. Supervision of 243 credit unions was transferred to the newly established department.
The Kansas Department of Credit Unions regulates state chartered credit unions. The department’s objectives include ensuring the safety and soundness of credit unions and the monitoring of compliance with laws and regulations, thereby safeguarding the funds of credit union members. These objectives are carried out by a staff of credit union financial examiners, and an office support staff dedicated to continuously improving working relations with our customers.
Shares (deposits) in Kansas chartered credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA). Established by the United States Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board.