Credit unions and community banks face a similar regulatory onslaught, which makes it disappointing credit unions were not included in Wednesday’s House Financial Services Committee hearing focused on community banking.  

America’s Credit Unions President/CEO Jim Nussle expressed these concerns in a letter sent to the committee prior to the hearing, noting “any effort to make community banking great again must include recognition of the role credit unions play and provide them with the same comparable relief as community banks.”

The letter notes credit unions have a record of opening new branches to “cure” financial deserts, opening 562 net total branches since 2012, while banks have closed more than 20,000 branches during that period.  

“Community banks and credit unions have performed the vast majority of banking desert curing [since 2019]: of the 119 bank deserts that were fully or partially cured, community banks were responsible for 45% (54 curings), and credit unions were responsible for 35.7% (42 curings), indicating the important role that both types of institutions play in serving communities nationwide,” he wrote. 

Nussle urged the committee to consider measures to allow credit unions to thrive and better serve their members, including: 

• Expanding options for credit union investments; 
• Extending the loan maturity limit for credit unions;  
• Make it easier for credit unions to join a Federal Home Loan Bank;  
• Modernization of outdated provisions in the Federal Credit Union Act; 
• Increase the ability of credit unions to meet the needs of their small business members;  
• Update the definition of a de novo credit union in the Federal Credit Union Act; and 
• Provide minority depository credit unions with greater flexibility.  

He also encouraged the committee to advance legislation that would tackle several recent concerning CFPB actions, including reforming the Section 1071 rulemaking and using the Congressional Review Act to disapprove of the bureau’s overdraft rule.