CBC FCU's Miller takes reg. relief message to op-ed page
April 6, 2015
OXNARD, Calif. (4/7/15)--In a guest commentary that appeared in the Pacific Cost Business Times April 3, Patrick Miller, president/CEO of CBC FCU, Oxnard, Calif., warned that regulatory burden could threaten credit unions' ability to provide lending to their members.
"Every action the National Credit Union Administration, the Consumer Financial Protection Bureau (CFPB), and Congress take has real world consequences for credit unions and their 102 million members," Miller wrote. "It is important to note credit unions are not attempting to lend irresponsibly and, in fact, have historically always been very prudent lenders. Credit union employees know their members and their ability to borrow, but that relationship is not recognized in the over 6,000 pages of regulations implemented since 2009."
Miller noted the credit unions acted responsibly during the financial crisis but appear to be unfairly penalized for actions of too-big-to-fail financial institutions. Since the beginning of the financial crisis, credit unions have been subjected to more than 190 regulatory changes from nearly three dozen federal agencies totaling close to 6,000 Federal Register pages.
"We work every day to deliver service excellence to our members, but that cannot happen when certain statutory and regulatory barriers keep credit unions from fully serving the needs of their members," Miller wrote. "We want to work with Congress, and specifically the Financial Services Committee, to remove barriers and create opportunities, so credit unions can better serve their members while continuing to practice safe and sound lending practices."
Miller noted that the four largest banks in the United States have total assets greater than the combined assets of the entire credit union system. "Constant regulatory changes present a particularly difficult challenge for small depository institutions because the fixed costs of compliance are proportionately higher for smaller-sized credit unions and banks than for large institutions," he wrote.
Miller testified on behalf of CUNA last month at a U.S. House Financial Services Committee hearing on regulatory relief (News Now March 19). Relieving the regulatory burden of credit unions is a CUNA advocacy priority.