SPOKANE, Wash. (10/23/14)--Credit unions were not part of the systemic problem that caused the recent recession, U.S. Rep. Denny Heck (D-Wash.) told a general session audience at the Northwest Credit Union Association's recent Amplify Convention. "More often than not they are part of the solution," Heck said.
|U.S. Rep. Denny Heck (D-Wash.) told a general session audience at the Northwest Credit Union Association's recent Amplify Convention that "more often than not they are part of the solution" within the financial services industry. (Northwest Credit Union Association Photo)|
The U.S. financial system may need some adjustments to avoid another recession, but current banking regulations are often superfluous to credit unions, Heck said. "Banking regulators have [risk-based capital] rules," he said (Anthem Oct. 21). "But just because it's right for banks doesn't mean it's right for credit unions. I don't think it is."
If regulators insist that credit unions raise capital in order to satisfy RBC regulations, then those regulations should not go into effect until H.R.719, the Capital Access for Small Businesses and Jobs Act, is passed, because the bill would allow credit unions to raise supplemental capital, Heck said.
Heck challenged Amplify attendees to lead by example, and to continue distinguishing themselves in the financial services marketplace with their "people-helping-people" philosophy.
"I have this sacred obligation to represent the people of Washington's 10th District," he said. "A lot of them are facing the black hole of credit card debt, auto debt and student loan debt. Many other financial institutions aren't willing to do the work of financial education, because they profit from those problems.
"Credit unions are a movement predicated upon the financial well-being of your members," Heck continued. "As the credit union movement gets bigger, we should not lose sight of that. It's getting bigger because it's different."