WASHINGTON (3/8/16)--The Credit Union National Association’s (CUNA) groundbreaking regulatory burden study, as well as ancillary materials put together by CUNA, is now publicly available in its entirely. Conducted by Cornerstone Advisors, the study found that regulatory burden diverted $7.2 billion from services in 2014 alone.
The report found that regulatory burden on credit unions caused $6.1 billion in regulatory costs and an additional $1.1 billion in lost revenue. The $6.1 billion alone represents 17% of operating expenses of the entire credit union system, or roughly $1 out of every $6 spent.
In addition to the complete study, other available materials include:
CUNA Chief Policy Officer Bill Hampel said the study will be brought up to policymakers in the future at “every opportunity” and encouraged credit unions to use it to illustrate the cost of regulatory burden to officials that represent their communities.
“We’re going to use this here in Washington to get the message across that this regulation is not free and is imposing costs on consumers, and that they should think twice about adding more regulation and maybe start rolling back, or minimizing or exempting credit unions from existing rules,” Hampel said.
The study was a chief topic of discussion during credit union Hike the Hill visits during CUNA GAC. Credit union leaders brought the results to their legislators and were able to break down how much regulations are costing each credit union on a per-member basis in each state.
For example, regulatory burden in 2014 cost Maine credit unions $49.2 million, so each Maine credit union spent more than $819,000 for compliance, which breaks down to $75 for every credit union member in Maine.
“These are dollars that could be flowing directly to members through lower rates on loans, higher rates on savings, or new services,” Maine Credit Union League President John Murphy told Sens. Susan Collins (R) and Angus King (I), along with Rep. Bruce Poliquin (R) during a meeting with the legislators during CUNA GAC.
For a video of Hampel going into some of the study's findings in depth, see "Nussle, Meade, Hampel videos highlight CUNA's advocacy, policy insights" in today's News Now.
CUNA is working with Cornerstone Advisors to develop a calculator for member credit unions to generate their own regulatory burden estimates.