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NAFCU Board meets with Federal Reserve’s Powell

WASHINGTON, DC (December 4, 2014) — The National Association of Federal Credit Unions (NAFCU) Board of Directors is meeting with the Federal Reserve today to discuss credit union issues and present findings of the 2014 NAFCU Report on Credit Unions. The meeting is being hosted by Federal Reserve Board Governor Jerome Powell.

“Our 2014 NAFCU Report on Credit Unions shows despite the legislative and regulatory challenges credit unions must deal with, they remain prudent lenders in serving their 98 million member-owners and play a significant role in the nation’s economy,” said NAFCU President and CEO Dan Berger. “This is the 22nd year the association is meeting with the Federal Reserve, and we look forward to continuing our discussion on matters vital to credit unions and the financial services industry.”

The 2014 NAFCU Report on Credit Unions looks at five key areas: credit union trends, credit unions’ service to their members and use of Federal Reserve services, legislative issues facing credit unions, regulatory issues facing credit unions, and interest rate risk.

Some of the highlights in the 2014 report include the following:

  • As of June 2014, federally insured credit unions’ (FICUs) year-over-year loan growth (9.8 percent) far outpaced year-over-year share growth (3.4 percent).
  • A majority of credit unions offer internet banking (73.4 percent) and a growing number offer mobile banking (40.3 percent).
  • Preserving the credit union tax exemption is the top legislative priority of NAFCU. A NAFCU- commissioned study released in February 2014 shows that the total benefit to U.S. consumers from the presence of tax-exempt credit unions in financial markets adds up to about $17 billion per year.
  • Credit unions continue to be challenged by the increasing regulatory burden in the post Dodd-Frank Act environment and are in need of comprehensive regulatory relief.
  • Data security and cybersecurity are serious issues for credit unions since credit unions are often the ones who pay to make their members whole when a data breach occurs. Congress must enact national data security standards for retailers, which hold consumers’ sensitive financial information.
  • Credit unions continue to devote significant resources toward compliance solutions related to CFPB’s mortgage rules and Truth in Lending Act and Real Estate Settlement  Procedures Act integration.
  • The National Credit Union Administration (NCUA) should significantly modify its proposed risk-based capital rule to ensure credit unions are not negatively impacted.
  • The percentage of credit union shares held in core deposits is similar to 2003 levels, immediately prior to the last period of rising interest rates.
  • Credit unions have begun to make sizeable reductions to their long-term investment portfolio.

NAFCU Board members attending today’s meeting at the Fed include Ed Templeton, NAFCU chair and president and CEO of SRP Federal Credit Union in North Augusta, S.C.; Rich Harris, NAFCU vice chair and president and CEO of Caltech Employees Federal Credit Union in La Canada, Calif.; Jeanne Kucey, NAFCU treasurer and president and CEO of JetStream Federal Credit Union in Miami Lakes, Fla.; Debra Schwartz, NAFCU secretary and president and CEO of Mission Federal Credit Union in San Diego, Calif.; Martin Breland, president and CEO of Tower Federal Credit Union in Laurel, Md.; Cutler Dawson, president and CEO of Navy Federal Credit Union in Merrifield, Va.; Tom DeWitt, president and CEO of State Farm Federal Credit Union in Bloomington, Ill.; Jan Roche, president and CEO of State Department Federal Credit Union in Alexandria, Va.; Rod Taylor, president and CEO of Barksdale Federal Credit Union in Bossier City, La.; and Daniel Weickenand, CEO of Orion Federal Credit Union in Memphis, Tenn.

In addition to NAFCU President Berger, other key NAFCU staff attending include Anthony Demangone, executive vice president and COO, Carrie Hunt, senior vice president of government affairs and general counsel, and Curt Long, chief economist and director of research.

The information gathered in the 2014 NAFCU Report on Credit Unions is based on the association’s Federal Reserve Meeting Survey, an annual assessment of NAFCU members covering topics discussed in the report. The report also uses information from NAFCU’s Economic & CU Monitor, CU Industry Trends Report and the association’s 2014 study, “Economic Benefits of the Credit Union Tax Exemption to Consumers, Businesses and the U.S. Economy.” The 2014 NAFCU Report on Credit Unions is available at www.nafcu.org/research/reportoncreditunions.

The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.

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