WASHINGTON, D.C. – Today, the Defense Credit Union Council (DCUC) sent a letter to the Honorable Andy Barr, Chairman of the Financial Institutions and Monetary Policy Subcommittee of the House Financial Services Committee, commending his leadership in introducing the de novo bank bill. “Your focus on reducing barriers to entry in the financial sector is critical to fostering competition and ensuring that consumers, particularly those in underserved communities, have access to a robust and diverse range of financial institutions," wrote Jason Stverak, DCUC Chief Advocacy Officer.
In its letter, DCUC highlighted the importance of extending similar support to credit unions, especially those seeking to establish new (de novo) institutions. Stverak noted how the current process of chartering new credit unions presents significant challenges that limit the ability of these aspiring institutions to meet the needs of their local communities. Since 2015, only a handful of new credit unions have been chartered, which DCUC stresses as a concerning trend that warrants examination of burdensome hurdles created by current regulations. DCUC identified these several barriers, including:
DCUC echoed NCUA Vice Chairman Kyle S. Hauptman’s sentiments, who has prioritized simplifying the new credit union chartering process. During the NCUA Board Briefing on New Charter and Field of Membership Updates in October 2024, Hauptman noted the historical role of credit unions in achieving financial inclusion while acknowledging the increased complexity of the process, which now often takes years to complete. “We respectfully ask for your support in introducing complementary legislation to your de novo bank bill that would address these challenges for credit unions,” Stverak wrote. “By creating a more favorable environment for starting new credit unions, Congress can empower communities to establish financial institutions that are not only mission-driven but also better aligned with the unique needs of their members." For more information, please contact Jason Stverak at [email protected] and visit dcuc.org/advocacy. Comments are closed.
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