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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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  • December 4, 2017

NCUA Closes Louisiana Credit Union

In December of 2017, the NCUA closed Riverdale Credit Union, whose assets were then immediately acquired by Jefferson Financial Credit Union of Metairie.

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  • November 29, 2017

Another Georgia Bank to Be Acquired by Credit Union

SRP Federal Credit Union in North Augusta, South Carolina reached an agreement to acquire Southern Bank in Georgia – a merger that would total the assets of the credit union to $950 million.

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  • October 10, 2017

Taking Advantage of the Fed’s Discount Window

Credit unions borrowed 270 times from the Federal Reserve’s Discount Window during the third quarter of 2015. Vermont State Employees Credit Union (Montpelier, VT) visited the Discount Window 13 times.

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ABA: The American Bankers Association

Copyright © 2023 American Bankers Association | About this Campaign

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Copyright © 2021 American Bankers Association | About this Campaign