Credit Unions Call—Selectively—for Level Playing Field

Posted: Apr 17 2024

The credit union lobby’s latest rallying cry advocates to “ensure all financial providers operate in a fair regulatory environment, under the same rules and with the same consumer protection requirements.” But as noted in a new blog post on Reform Credit Unions, while that may sound like the longtime position of the banking industry, credit unions only want “fair” regulatory oversight for fintech companies, not themselves.
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“The $2.2 trillion credit union industry, which has increasingly moved away from its congressionally mandated mission of providing basic consumer financial services to those of ‘modest means,’ should heed its own advice by adhering to the same standards as other financial institutions,” the blog post states. “Despite their new messaging, credit unions are still lobbying against regulatory changes designed to bring forth some much-needed transparency to their industry and level the playing field with banks.”
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Among other things, the blog post points to the credit union industry’s continuing challenge to the National Credit Union Administration’s multiyear bid for third-party vendor oversight, which would put the NCUA on equal footing with other federal banking agencies. “The more things change, the more they stay the same: credit unions want similar regulation for similar activity, so long as it doesn’t impact their existing carveouts,” the blog post states.

To read more, visit: https://www.reformcreditunions.com/news-and-insight/credit-unions-call-selectively-for-level-playing-field/