WASHINGTON–Rep. Maxine Waters (D-CA) has introduced the American Access to Banking Act, which is aimed at promoting the creation of new credit unions and community banks known as de novo depository institutions, especially in markets that lack financial services, known as “banking deserts.”
The trade group said it is also watching a number of other pieces of legislation his week, as well as the NCUA board meeting on Thursday.
America’s Credit Unions has sent a letter in support of Waters’ new bill, saying the legislation would expand the “vital work” credit union are already doing in serving families and small businesses in banking deserts and to “ensure more Americans have a trusted financial partner in their community.”
‘Meaningful Steps’
“We applaud Congresswoman Maxine Waters for introducing the American Access to Banking Act, which takes meaningful steps to remove unnecessary barriers facing de novo credit unions,” ACU’s chief advocacy officer, Carrie Hunt, said in a statement. “We are always supportive of legislation that responds to the need for de novo institutions in the midst of an ever-evolving financial landscape. Additionally, we want to ensure that current credit unions already serving more than 144 million people have the resources they need to survive and thrive today—whether that’s by lowering the cost of doing business, fighting fraud, reducing regulatory burdens, or addressing the challenges both existing and new credit unions face.
Also Getting Attention
Meanwhile, with both the House and the Senate are in session this week, even though there isn’t any legislation the directly affects credit unions on the agenda of either body, CUs are watching several things, as well as this week’s NCUA board meeting.
The House Financial Services Committee, for instance, is largely focused on bills related to capital markets this week, but Hunt said it continues to push to see some credit union-backed pieces of legislation move forward, including the Credit Union Board Modernization Act, which she noted now has grown to 42 co-sponsors.
“We are cautiously optimistic be able to see some momentum into the Fall when Congress comes back after the recess,” Hunt said.
Two Concerns With NCUA
In addition, America’s CUs will be looking across the Potomac on Thursday when NCUA holds its second board meeting with Chairman Kyle Hauptman as the lone board member.
While it’s not an item on the board agenda, as the CU Daily reported earlier, ACU is concerned with several issues related to credit union and bank regulation.
With President Trump having now signed the GENIUS Act and other crypto-related legislation into law, America’s Credit Unions is calling on NCUA to begin rulemaking to allow credit unions to take custody of digital assets for members.
What’s Being Sought
What the trade group is seeking, Hunt said, is to ensure credit unions have parity with banks, after the banking regulators have already moved to begin updating their crypto-related rules.
In addition, the bank regulators have also announced plans to dial back some of the capital demands on banks.
“Ultimately, NCUA is required to issue capital regulations that provide some level of parity to what banks have to hold,” Hunt said. “NCUA has taken a very conservative approach to risk. In fact and in particular, just because a credit union is large does not necessarily mean it is risky. We will be expecting NCUA to provide parity.”
CUs & CRA
On a related note, Hunt noted the banking regulators have begun to reduce some of the Biden-era rules related to the Community Reinvestment Act (CRA) and the red tape involved.
“While credit unions don’t have to follow CRA, we continue to believe that it is not appropriate treatment for credit unions and should the issue of credit unions having to comply with CRA come up during the debate, we will ensure the credit union status is protected,” Hunt said.
Biggest Threat at State Level
The biggest threat to CUs related to CRA may actually be at the state level, with Hunt noting California in particular has seen CRA-related proposals for credit unions put forward.
