Credit Unions

NAFCU Shows Support For Economic Growth Act

The National Association of Federally-Insured Credit Unions (NAFCU) sent a letter to two state senators yesterday, expressing its support for The Economic Growth, Regulatory Relief and Consumer Protection Act.

Executive vice president of government affairs and general counsel, Carrie Hunt, sent the letter to Senate Majority Leader Mitch McConnell (R-KY) and Senate Minority Leader Chuck Schumer (D-NY), explaining how the bill would have a positive impact on the credit union industry.

“Regulatory burden is the top challenge facing credit unions today. Reducing burdensome and unnecessary regulatory compliance costs is the only way for credit unions to thrive and continue to provide their member-owners with basic financial services and the exemplary service they need and deserve,” said Hunt. “NAFCU believes that credit unions must have a positive regulatory environment that allows them to succeed.”

Since the second quarter of 2010, more than 1,700 federally-insured credit unions have shut down – more than 22 percent of the industry.

“We are pleased to see the coalition of Republicans and Democrats come together to get a package of relief and economic growth ideas that can get bipartisan support. We thank the co-sponsors for their leadership in crafting this package,” Hunt noted.

But not everyone is in favor of the bill. Senator Elizabeth Warren (D-Massachusetts) has vowed to fight the legislation, which is designed to replace the 2010 Dodd-Frank financial reform law.

According to Reuters, Warren will have a hard time derailing the new bill, which is authored by Senate Banking Committee Chairman Mike Crapo and has the support of 13 moderate Democrats. That backing, combined with Republican support, should be enough to ensure the bill’s passage.

The Democrats that support the legislation deny that it will help big banks. Instead, they insist it will enable small community banks and credit unions to lend more to small businesses.

“If we’re going to continue to have access to capital in rural areas of our country, this bill needs to pass,” said Senator Jon Tester.

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