RALEIGH, N.C.– Leaders in this state’s House of Representatives have introduced a bill they said is designed to address dwindling financial services options available to North Carolinians, especially in rural areas.

“Since 2013, banks have closed nearly 40% of branches in Tier 1 counties, which the N.C. Department of Commerce classifies as the 40 most economically distressed counties in the state,” the Carolinas Credit Union League said in a statement. “More than 640 bank branches have closed statewide. For example, FDIC data shows that eight counties, all of them in eastern North Carolina, now have a total of six bank branches between them. In 2013, they were home to 27 branches.”

The Sponsors

According to the league, first sponsored by state Reps. Julia Howard (R-Davie), John Bell (R-Wayne), Jennifer Balkcom (R-Henderson), and Ya Liu (D-Wake), the bill continues to garner bipartisan sponsorship support from House members.

“This is straightforward for me,” Howard said in a statement. “We have bank branches that are leaving rural North Carolina, and we have credit unions that want to better serve those communities but need government permission to do so. This bill grants credit unions that permission.”

The league cited a statement from the Fed that said, “Lack of access to banking services can mean losing opportunities to improve financial health and build wealth… Declining access to traditional banking services might also drive consumers to alternative financial services like payday lenders and check-cashing services that can raise the overall cost of banking and inhibit opportunities for saving.”

Expanded Membership

Because typically, to join a credit union a person must be part of some defined group, often working for the same employer or part of an association, the CCUL said House Bill 187 would give credit unions permission to also serve residents of a banking desert…”

A similar measure passed the House last session by an 85-25 margin.

Dwindling’ Options

“Thank you to Reps. Howard, Bell, Balkcom, and Liu. Credit unions have served North Carolinians for more than 100 years, and they’re seeking permission to extend that service to North Carolinians who have dwindling financial services options in their communities,” Dan Schline, president and CEO of the Carolinas Credit Union League, said in a statement.

The league added the bill also seeks to modernize the statutes governing credit unions, which haven’t been updated since the 1970s