ABA op-ed difficulties NCUA’s field of subscription growth proposition

In an American Banker op-ed released today, the American Banker Association’s Robert Flock took the National Credit Union Administration to job over its function in supporting the substantial growth of the cooperative credit union market, including its newest efforts to broaden cooperative credit union chartering and field of subscription guidelines.

The proposed guideline “includes several amendments that would ultimately dilute credit union service to the local communities they are meant to serve,” Flock mentioned, along with enabling cooperative credit union to include noncontiguous rural districts to their fields of subscriptions. “Practically speaking, this new policy would enable a credit union in New Mexico to add an underserved rural district in Louisiana to its field of membership, flying in the face of the Federal Credit Union Act, which requires credit unions to maintain a ‘local’ presence,” he stated.

The proposition would likewise eliminate particular availability requirements from service and marketing prepare for brand-new neighborhood charters, charter conversions or growth applications, possibly disadvantaging handicapped and senior populations, along with those with movement constraints.

“The NCUA’s proposed rule on chartering and field of membership follows five other rules relaxing membership standards throughout the last several years,” Flock composed. “While each imparts only subtle changes to the overarching field of membership architecture on its own, the cumulative effect of these rules is undeniably a weakening of the standard for credit union membership and community service. The common bond used to be a central component of the credit union movement. Without strong ties between members, how are modern credit unions any different than banks—aside from not paying taxes? Congress ought to take up that question.”


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