Newsroom
NAFCU counters ABA inquiry with NCUA letter
Late last week, the American Bankers Association's (ABA) sent a letter to the NCUA requesting an assessment of credit unions and their commitment to underserved populations. NAFCU's EVP of Government Affairs and General Counsel Carrie Hunt hit back immediately, responding with a letter, also to the NCUA, that NAFCU supports the agency remaining focused on priorities that will help the credit union industry.
“The ABA’s request is nothing more than an intimidation tactic,” said Hunt. “The ABA has long sought to extinguish credit union competition from the marketplace, and the association’s promotion of a poorly conducted and factually inaccurate paper – that they themselves funded – should leave no doubt about what their real motives are.
“If the ABA is truly concerned about the well-being of underserved communities then it should immediately drop their lawsuits seeking to prevent credit unions from helping these exact same communities. More so, the ABA should begin actively supporting and advocating in favor of legislation that would allow credit unions of all charter types to add underserved areas to their fields of membership. If bankers have truly reformed themselves and atoned for their behavior in 2008, they should step up to the plate and work to help people for once.”
Hunt’s NCUA letter points out that the report lacks original data and analysis – providing little support for its conclusions. "When competitor institutions question our mission and principles, they do so not out of concern for the average consumer or small business, but to draw attention away from their own, less appealing legacy, and to eliminate threats to shareholder returns," wrote Hunt.
Hunt also acknowledges that the report "fails to recognize the countless fines levied against banks and their endless attempts to thwart the law," pointing to the fact that banks have been fined at least $243 billion since the 2008 financial crisis. The fines alone would be enough to decimate the credit union industry.
"NAFCU supports a safe and sound credit unions system, a strong, independent NCUA, and a vibrant financial system in the country where credit unions and banks co-exist. It appears the banks want the entire pie for themselves," said Hunt’s letter.
NAFCU has long called for the credit union industry to be exempt from rules and regulations that were created due to the banking industry’s poor behavior. As the industry’s Washington Watchdog, NAFCU and its staff actively push back against banking lobbyists' efforts to rid credit union competition from the marketplace and, in doing so, often meet with members of Congress from all political affiliations, as well as leaders at the CFPB and the NCUA. The association most recently met with Chairman Hood to discuss regulatory burdens facing the industry.
Share This
Related Resources
Add to Calendar 2023-02-03 09:00:00 2023-02-03 09:00:00 Winning the Battle for Deposits Listen On: Key Takeaways: [01:28] An overview of the current macro environment. [02:55] Traditional tactics used by credit unions in the battle for deposits and why these are no longer enough. [07:39] Rife competition in the credit union space and how to stand out from the crowd. [10:23] The benefits credit unions can experience by reducing the cognitive load of their members [18:17] Advantages and disadvantages of PFM tools in the battle for deposits. [20:14] What credit unions should demand of their vendors. Web NAFCU digital@nafcu.org America/New_York public
Winning the Battle for Deposits
preferred partner
Personetics
Podcast
Add to Calendar 2023-02-02 14:00:00 2023-02-02 14:00:00 How to Leverage Loan Participations in a Low Liquidity Environment About The Webinar As credit unions continue to face challenges with liquidity starting off 2023, strategic pricing and long-term alternative funding strategies can play a key role in allowing credit unions to serve more members and successfully manage the balance sheet. Loan participations can play a key role helping credit unions sustainably grow their originations, provide the marketplace access to quality, short duration investments, and successfully grow market share. Please join Amy Henderson, Chief Consumer Services Officer at Greenstate CU, Devin Hughes, VP of Business Development at LendKey, and Michael Adams, VP of Lender Development at Open Lending for a panel discussion to learn how credit unions can strategically serve more members, effectively price for loans, and successfully manage their balance sheet. Attendees will: Hear from Credit Union and FinTech experts Learn about loan pricing strategies and participation strategies Glean best practices from industry leaders who have been executing on these innovative strategies that better position the balance sheet for long term growth Find out how credit unions can start the process to identify trusted partners to help them execute on this strategy and serve more members Register for the Webinar Web NAFCU digital@nafcu.org America/New_York public
How to Leverage Loan Participations in a Low Liquidity Environment
preferred partner
Open Lending
Webinar
HELOC 2.0 - Q&A with Wolters Kluwer
Management, Relationships, Consumer Lending
preferred partner
Wolters Kluwer
Blog Post
Get daily updates.
Subscribe to NAFCU today.