As credit unions struggle to keep up with the regulations that continue to pour out of federal agencies, there appears to be additional support developing to help them.
The corporate crisis of 2008-2009 has been stabilized and corrected with stronger regulations, closer monitoring and more effective examination and a system of fewer but stronger entities serving the industry’s needs.
The economy is ever so slowly improving and natural person credit unions are adding members, growing in asset size and maintaining a strong presence in the financial services industry.
Despite improvements in the financial sector, regulators, rather than stepping back and reviewing what has been put in place the last six years, continue to promulgate additional regulations that are beginning to stifle the ability of credit unions to offer their members competitive financial services. The days of individuals joining credit unions because of better savings and loan rates are long gone. The recession took care of that. Although rates will always be important, credit unions need to offer a lot more to maintain their members let alone attract new ones.
The national trade organizations have for some time been cheer leading the credit unions cry for less regulation. Those organizations along with the credit unions are now beginning to enjoy the support of a group with real clout—the United States Congress.
In recent months, committee chairman along with other members of the House and Senate have publicly stated their support for a review of regulators and the regulations they have put in place. A hard look is being taken at the CFPB as they have become the “Regulator in Chief” by implementing more regulations in a record period of time. Over 350 Congressmen signed a letter to NCUA urging a more detailed look and a slower pace in dealing with the risk-based capitol rule. All these actions indicating that just maybe some regulatory relief is in sight.
Now that it appears Congress is listening and regulators are taking note of that, the proponents seeking a review of the regulatory process must proceed in an organized, comprehensive and logical way. The trade organizations and credit unions must state their case in a concise but simple way.
For each regulation that is of concern they must state the problem, articulate the reason for change, offer a solution and be realistic in their request.
The two hundred pound elephant and his counterpart the donkey are now in the room and listening. Do not let them leave without some relief by over-reaching what you can achieve.