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CEO Corner: Common-Sense Regulation Makes Sense

“Excessive regulations intended for Wall Street Banks actually cost credit unions $7.2 billion per year — that’s an average of $71 for each of the nation’s 105 million credit union members.” (CUNA)  
With the Great Recession only a not-too-distant memory for most of us, it is time to reflect upon the impact that excessive government regulation enacted after the financial crisis has had on our ability as a credit union to best serve you, our members and communities. As a member-owned cooperative, a credit union’s success is literally tied to the financial health of the people who walk through our doors or visit our website every single day. The symbiotic structure is why credit unions remain the safest and most consumer-friendly option in banking.
What is “one-size-fits-all” regulation? In response to the 2008 recession, regulation was passed to impose rigorous standards across the entire financial industry. The current set of complex Washington regulations were created to rein in the big Wall Street banks. However, these one-size-fits-all rules do not work for credit unions on Main Street. We agree that regulations serve an important purpose, but one-size-fits-all regulations end up hurting consumers.

It is more important than ever to advocate for Common-Sense Regulation. Common-Sense Regulation has a goal to reduce the impact on credit union operations while sustaining the important reforms that govern big banks. This will help protect the credit union and our members from the increased cost of regulation in the form of lower loan rates and wait times and increasing modernized technology, products and services. Without common-sense regulation, our existing policies make it harder to offer credit union members overdraft protection while incurring higher costs for services, longer wait times for loans and information overload during the mortgage process.

The great news is that members of Congress, of all political parties, are rolling up their sleeves and getting to work to help middle-class Americans. Credit Unions had a major victory in June 2017 for our fight for Common-Sense regulations; Congress passed the Financial CHOICE Act on the House Floor! This could not have happened without your support and outreach.

But the fight is not over. We still need to get the Financial CHOICE Act passed in the Senate. To find out more information about the campaign for Common-Sense regulation and how you can make an impact, click here.
For You & Because of You –
Patty Campbell