Final answer:
The National Credit Union Administration (NCUA) regulates and supervises approximately 5,000 member-owned credit unions in the U.S., ensuring these nonprofit banks maintain sound financial practices and member savings are insured up to a specified limit for protection.
Step-by-step explanation:
The National Credit Union Administration (NCUA) is tasked with the supervision and management of credit unions in the United States. Credit unions are distinct within the financial landscape as nonprofit banks owned and operated by their members. Unlike traditional banks, credit unions are relatively small in size, emphasizing community-based financial services. With approximately 5,000 credit unions across the U.S., the NCUA ensures these institutions are abiding by regulatory standards, maintaining positive net worth, and managing risks appropriately to safeguard the financial interests of their members. Notably, the NCUA, much like the Federal Deposit Insurance Corporation (FDIC) for banks, provides a safety net, insuring savings accounts in credit unions up to a certain threshold, thus protecting individual investments and savings.