CINCINNATI, Ohio (9/17/14)--Credit unions feel the burden of heavy regulation as much as banks, according to a Sept. 15 Business Courier of Cincinnati Online article.
Business Courier reporter Steven Watkins met with a group of Greater Cincinnati credit union executives for lunch to talk about the issues that are affecting them, and the regulatory burden was near the top of the list.
The credit union group had just met U.S. Rep. Steve Chabot (R-Ohio) about the possibility of easing the regulatory burden.
The financial services industry has had to endure the burden of 180 new rules and regulations that Congress has put into effect since the financial crisis, Patrick Harris, director of legislative affairs for the Ohio Credit Union League, told Watkins.
One of the primary reasons small credit unions cite for merging into larger institutions is to escape the creeping costs of compliance, said Jay Sigler, president/CEO of Cinfed CU, Cincinnati, with $329 million in assets. Cinfed CU recently merged a smaller credit union into its operations for that reason. Sigler's credit union has had to hire additional personnel to handle compliance.
Security breaches were also a concern for Cincinnati-area credit unions. Cincinnati Central CU, with $94 million in assets, called every member with a credit card who was impacted by the Home Depot breach, said Chief Operating Officer Kathy Haas. It also replaced all the cards.
That kind of service comes at a high price, Haas said, adding that it's card issuers, not merchants, who are shouldering the costs of data breaches.