Credit Union Practices study guide
Credit Union Practices · Work through your exam, one topic at a time.
The Credit Union Practices credential is a professional examination for people who work in or with credit unions and need to demonstrate working command of how these institutions actually operate. It suits member-service representatives, loan officers, branch and operations staff, compliance and BSA analysts, internal auditors, and finance personnel moving into broader roles, as well as staff at vendors and service organizations who support credit unions. The Credit Union Practices study guide has 7 sections and about 2,304 words.
01Credit Union Structure, Governance, and Regulatory Framework
Credit unions are not-for-profit, member-owned cooperatives organized under either federal law (the Federal Credit Union Act, administered by the NCUA) or state law (supervised by a state regulator, with NCUA as insurer and sometimes dual examiner). Understanding the field of membership is essential: a charter defines who may join (occupational, associational, geographic, or a community charter).
369 words, about 2 min02Member Services and Account Operations
This domain tests operational accuracy: account ownership structures, transaction processing, and member-facing service standards. Candidates must distinguish individual, joint, payable-on-death (POD), trust, and business accounts .
325 words, about 2 min03Lending and Credit Administration
Lending is the primary source of credit union income and risk. Candidates must understand the five Cs of credit - character, capacity, capital, collateral, and conditions - and how underwriting applies them.
331 words, about 2 min04Deposit and Share Insurance
Credit union shares are insured by the National Credit Union Share Insurance Fund (NCUSIF) , administered by the NCUA, not the FDIC. The standard coverage limit is $250,000 per depositor, per insured credit union, per ownership category - the same structure as FDIC coverage but a different fund and administrator.
323 words, about 2 min05Compliance, Consumer Protection, and BSA/AML
This domain blends consumer protection statutes with anti-money-laundering obligations. Candidates must recognize the purpose and core requirement of each regulation.
312 words, about 2 min06Financial Management, Accounting, and Asset-Liability Management
Credit union financial management centers on safety and soundness, measured through capital, asset quality, earnings, and liquidity. Key metrics: net worth ratio (net worth / total assets), return on assets (ROA) , net interest margin (NIM) , and delinquency and charge-off ratios .
333 words, about 2 min07Risk Management, Internal Controls, and Fraud Prevention
This domain tests the ability to identify risks and the controls that mitigate them. The classic control framework separates preventive controls (segregation of duties, dual control, authorization limits) from detective controls (reconciliations, audits, exception reports).
311 words, about 2 min