Lack of Accountability

Given the services they provide and their structure, credit unions should presumably adhere to stringent regulatory requirements like banks do and public disclosure requirements like nonprofits do but neither is the case. These substantial regulatory and disclosure gaps shield the credit union industry from proper scrutiny, which is a disservice to all Americans. This is especially problematic for those who support traditional, mission-driven credit unions facing competitive pressures from modern ones pursuing profits. 

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Expert Views

Josh Silver, National Community Reinvestment Coalition
The Community Reinvestment Act should be expanded to cover credit unions, other nonbank lenders and insurers, according to the National Community Reinvestment Coalition. Noting the growing share of nonbanks and credit unions in mortgage lending, NCRC Senior Policy Adviser Josh Silver argued that if nonbanks remain outside of CRA, “the competitive position of banks eventually will be undermined to the detriment of access to safe and sound credit and capital for LMI communities.” 
— National Community Reinvestment Coalition, 2020
Todd Harper, Then-NCUA Board Member and Current NCUA Chairman
“Why should it take complex, federally insured credit unions with $500 million or more in assets seven or eight years longer to implement their comparable risk-based capital rule than it took for banks and thrifts to implement theirs? That’s an uneven regulatory playing field.” 
— National Credit Union Administration, 2019
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Recent News and Insights

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Shop Therapy: A Bank Buying Bonanza. Large credit unions have been gobbling up smaller credit unions by the dozen, with 187 acquisitions last year, according to the Wall Street Journal. With fewer targets remaining, acquisitive not-for-profit credit unions have turned their attention elsewhere, buying a record number of banks.

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We all know the sacrifices made each and every day by our men and women in uniform to defend our freedom. Shouldn’t we, in turn, ensure their freedom to select the best financial services to fit their needs? That can only happen if we allow our service members greater access to regulated on-base banking services than they currently receive.

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San José State University and Provident Credit Union (Redwood City, CA) entered into an $8.1 million, 20-year partnership agreement to rename The Event Center at San José State University to Provident Credit Union Event Center.

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Verve, an Oshkosk, Wis., credit union said it planned to acquire South Central Bank NA, a $300-million community bank based in the Chicago area. – CU Today, June 2019

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