WASHINGTON—Leaders of the House Financial Services Committee are being asked to ensure the committee adopts policies that support both credit unions and community banks as the HFSC prepares to hold a hearing next week titled, “Make Community Banking Great Again.”
The hearing will address the state of community based financial institutions and services.
In a letter to HFSC leaders, the Defense Credit Union Council states credit unions and community banks are the “backbone of financial services for millions of Americans. Congress must work to support, not hinder, the ability of credit unions and community banks to serve their communities effectively.”
The letter, signed by DCUC Chief Advocacy Officer Jason Stverak, outlines the many benefits credit unions provide to local communities and to the overall economy.
Stverak points out:
- Credit unions offer better rates on mortgages, with an average 30-year fixed mortgage rate 0.25% lower than the national bank average
- Auto loans from credit unions are often 1-2 percentage points lower than those from banks, saving consumers thousands of dollars over the life of a loan
- Credit unions, despite facing an outdated 12.25% cap on member business lending, have continued to support small businesses. In 2023, credit unions provided over $91 billion in small business loans, directly helping entrepreneurs and local economies grow
Stverak also outlined the “pressing” issues the movement faces, including:
- Overregulation and compliance costs
- Interchange regulation threats
- Taxation and charter threats