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Why Credit Unions?
As you may know, there is a move afoot by the banking industry to constrict Kansas credit unions’ field of membership (FOM). In January, the Kansas Credit Union Association introduced legislation, HB 2676 which can be found at http://www.kslegislature.org/bills/2008/2676.pdf. The intent of this bill (one-half page in length) is to clarify in the law past and current practices of the Kansas Department of Credit Union administrators when granting FOM changes to credit unions. This bill was introduced in order to satisfy the recommendations from last fall’s Senate Financial Institutions and Insurance Interim Committee, which was chaired by Sen. Ruth Teichman, a banker.
After the Credit Union bill was introduced the banking industry introduced legislation in the Senate Financial Institutions and Insurance Committee, which is chaired by the same Senator mentioned above. Read the banking industry’s bill, SB 535 (nine pages in length), at http://www.kslegislature.org/bills/2008/535.pdf. The banking industry’s proposed legislation largely mirrors their own legislation regarding branching procedures plus it places restrictions on credit union field of membership. This legislation, for example, would possibly prohibit BWCU from branching out to other cities like we have done in Lawrence and might kill our plans to reach out to other Kansas cities.
In light of the banking industry’s opposition to the Credit Union’s proposed bill, it strikes us that some very pertinent questions have some very obvious answers.
What gives the massive and wealthy banking industry the right or authority to bully their way into re-writing the rules for Kansas credit unions?
Kansas credit unions are Kansas-born entities. We employ and serve Kansans. Why should the legislature restrict a viable Kansas industry’s growth in Kansas? Potentially, without Kansas credit unions, hundreds of millions of dollars in loans and deposits would leave Kansas and Kansans would probably be adversely impacted with higher loan rates and lower deposit rates. Would that be good for Kansas, Kansans or Kansas’ economy?
Why constrict the reach of Kansas’ credit unions when banks, payday lenders and other financial services providers can open an outlet on any corner in any city they choose?
What entities have filed serious complaints with the Kansas Attorney General, Kansas Department of Credit Unions, Kansas legislature, the Governor’s office or consumer advocacy groups about Kansas credit unions that would justify constricting current and restricting future credit union growth? (We are aware of only one - the banking industry.)
For the good of Kansans and Kansas credit unions, please ask your State Representative to support HB 2676 without amendment and ask your State Senator to oppose SB 535 if they are presented with the opportunity to vote on these bills.
Gary Regoli
Chief Executive Officer
gregoli@bwcu.org
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