Department News GOVERNMENTAL RELATIONS
MBA Gears Up for Credit Union Field of Membership Fight By David Kent, Senior Vice President
After more than 15 years of relative peace between banks and credit unions in the Missouri State Capitol, the Missouri Credit Union Association is pushing for a sweeping expansion to field of membership law. Senate Bill 388 would grant credit unions access to:
• either the Kansas City Metropolitan Statistical Area (14 counties)
• St. Louis Metropolitan Statistical Area (11 counties and City of St. Louis)
• rural areas that would include multiple contiguous counties up to 1 million in population
• a multiple common bond of employer or association, or a combination thereof
Current law regarding credit union field of membership is the result of a negotiated compromise between MBA and MCUA in 2007 aſter nearly a decade of litigation. Credit union FOM may include the county in which the credit union is headquartered and all bordering counties. Credit unions also may serve a single common bond, which is a group that shares common occupation, association or employer.
MCUA is pushing Senate Bill 388 in what they claim is an effort to achieve parity with federal-chartered credit unions. And without parity, state charters will move to a federal charter. Tis is a matter of fairness, they say — which is ironic coming from an entity that pays no federal income tax but acts and operates just like a bank!
Te truth is that FOM expansion will only lead to more growth for large credit unions and more mergers of small credit unions. And the larger a credit union grows, the more they will compete with banks. Today, large credit unions oſten skip rural and modest income communities to serve the broader middle class. Tey are indistinguishable from banks and regularly compete directly with banks for the same customers, including business lending, all while avoiding paying federal income taxes.
MBA stridently opposes credit union FOM expansion. It is important that legislators hear directly from you, their constituents, about why they should oppose credit union FOM expansion. Not a single legislator was in the Missouri General Assembly for the last legislative fight in 2007 when the FOM agreement was made. As such, many legislators are unaware of the differences between credit unions and banks.
Sign up for a Target Banker visit so you can voice your concern about Senate Bill 388. Target Banker visits are scheduled throughout February, March and April during the state legislative session. Target Banker visits are a great opportunity for us, as a banking community, to be heard!
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Send achievements, news and announcements to Lori Bruce, MBA communications director,
at
lbruce@mobankers.com for posssible inclusion in The Missouri Banker.
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