Status
The DoD’s Overseas Military Banking Program’s contractual terms conflict with the Federal Credit Union Act and the DoD Financial Management Regulation since the DoD granted the Overseas Community Bank contract to a credit union and there are already credit unions operating overseas.
Our Position
DCUC proposes the DoD cancel the contract and work with a combination of credit unions already situated overseas and with either foreign banks or the Federal Reserve.
Background
There are increasing concerns regarding the relationship between the DoD and the financial services sector, encompassing both banks and credit unions. Over the past six years, a noticeable decline in support and engagement with external agencies has disrupted longstanding free public-private partnerships that have traditionally connected the Department with military financial institutions since the conclusion of World War II.
The diminishing support can largely be ascribed to the escalating dysfunction within the overall DoD Banking Program, stemming from the departure of individuals due to retirement or leaving federal service. The departure of experienced personnel is not being adequately replenished, leading to a situation where the DoD lacks the necessary knowledge base and workforce to effectively execute this crucial program in alignment with its original design.
Compounding the issue, the DoD has demonstrated an inability to manage banking operations independently, necessitating assistance from banks and credit unions. The controversial awarding of an overseas bank contract without ensuring fundamental deposit insurance is a clear example of why the DoD should strive to minimize its involvement in the financial sector. Continued attempts to weaken DoD’s “one bank and one credit union” policy are also on the rise. This dysfunction has a detrimental impact on military operations and personnel, along with decades of goodwill between the installation and credit unions, further underscoring the need to reassess the current approach.
Resources
Handouts of DCUC's current advocacy priorities are available for download. These handouts include information on each advocacy priority and talking points you can use when contacting your state representatives and senators.
The DoD’s Overseas Military Banking Program’s contractual terms conflict with the Federal Credit Union Act and the DoD Financial Management Regulation since the DoD granted the Overseas Community Bank contract to a credit union and there are already credit unions operating overseas.
Our Position
DCUC proposes the DoD cancel the contract and work with a combination of credit unions already situated overseas and with either foreign banks or the Federal Reserve.
Background
There are increasing concerns regarding the relationship between the DoD and the financial services sector, encompassing both banks and credit unions. Over the past six years, a noticeable decline in support and engagement with external agencies has disrupted longstanding free public-private partnerships that have traditionally connected the Department with military financial institutions since the conclusion of World War II.
The diminishing support can largely be ascribed to the escalating dysfunction within the overall DoD Banking Program, stemming from the departure of individuals due to retirement or leaving federal service. The departure of experienced personnel is not being adequately replenished, leading to a situation where the DoD lacks the necessary knowledge base and workforce to effectively execute this crucial program in alignment with its original design.
Compounding the issue, the DoD has demonstrated an inability to manage banking operations independently, necessitating assistance from banks and credit unions. The controversial awarding of an overseas bank contract without ensuring fundamental deposit insurance is a clear example of why the DoD should strive to minimize its involvement in the financial sector. Continued attempts to weaken DoD’s “one bank and one credit union” policy are also on the rise. This dysfunction has a detrimental impact on military operations and personnel, along with decades of goodwill between the installation and credit unions, further underscoring the need to reassess the current approach.
Resources
Handouts of DCUC's current advocacy priorities are available for download. These handouts include information on each advocacy priority and talking points you can use when contacting your state representatives and senators.