Megabanks continue to grow as credit unions work to provide access to affordable financial services to 115 million Americans, CUNA told the House Financial Services Committee Wednesday, and a one-size-fits-all approach brings addition burdens to those credit unions. The committee conducted a hearing Wednesday with the executives of seven of those megabanks.
“Today’s hearing marks the first time since the wake of the financial crisis that the leaders of America’s megabanks will testify together before Congress,” the letter reads. “Although the Dodd-Frank Wall Street Reform and Consumer Protection Act sought to reign in financial institutions that were deemed ‘too big to fail,’ the high costs associated with regulatory compliance, as well as the various other unintended consequences of the legislation, have created a competitive advantage for those very institutions.”
The letter notes that the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) has alleviated some of those burdens, but that additional legislation that may be forthcoming should not be one-size-fits-all and recognizes the regulatory challenges and financial burden faced by smaller, less complex financial institutions.
CUNA’s letter highlights the nearly $12 billion in direct financial benefits to 115 million credit unions members, equivalent to $103 per member, as well as the more than $99 million in low or no-interest loans provided to more than 79,000 credit union members affected by the government shutdown.