Credit unions enjoyed economic stability as the nation suffered through the Great Depression. Because they were required by their bylaws to keep reserve funds sufficient, most credit unions were able to weather the Depression unscathed. Some emerged even stronger.
In 1930, a credit information exchange was created to enable associational, parish and open-membership credit unions to record all borrowers’ and co-makers’ names. The exchange, which opened with over 25,000 records, helped credit unions minimize delinquent accounts and eliminate bad accounts. That year, the nationwide credit union movement reached an important milestone when the 1,000th credit union was formed.
The New York State Credit Union League also continued to grow through the 1930s. Five League chapters were organized in Brooklyn, Buffalo, Albany, New York City and Rochester to promote closer cooperation, idea exchange and membership growth.
In 1934, Congress passed the Federal Credit Union Act allowing credit unions to be established anywhere in the country. Under the act, credit unions could choose whether to be state or federally chartered.
As the country began to recover from the Depression and the credit union movement expanded nationally, this led to the formation of a national organization: the Credit Union National Association, now commonly referred to as CUNA.
