Virginia's credit unions showed lawmakers the strength of cooperatives with a Storm the Hill event.
On Jan. 19, some 375 credit union representatives were in Richmond to lobby lawmakers for charter flexibility and the authority to accept public deposits. Sporting their signature red credit union scarves, credit union representatives were able to meet face-to-face with 120 of Virginia's 140 lawmakers or legislative aides.
“Our visits today with lawmakers were the continuation of four months of work in lobbying for these two key bills,” Virginia Credit Union League President Rick Pillow said. “Our credit unions wrote personal letters to legislators, held meetings in district offices and generated almost 5,000 emails to our lawmakers, all in support of our issues.”
Credit unions' charter flexibility bill would give regulators additional options in approving mergers, allowing credit unions to hold more than one charter, if deemed appropriate. A credit union's charter determines its field-of-membership and who is eligible to join the credit union.
The bill is in response to consolidation within the credit union system. Virginia averages 10 credit union mergers annually, but some potential mergers face significant regulatory obstacles when two credit unions have different, incompatible charters.
Bills to address to the charter flexibility issue have been introduced in both chambers – Senate Bill 582 and House Bill 874.
Credit unions also asked to be among the institutions authorized to accept public deposits and provide banking services to public entities. Public deposits are the funds managed by counties, cities and schools boards. Despite being tax-paying, local financial institutions, Virginia's credit unions are not currently authorized to accept and hold these funds.
According to the Virginia CUL, more than half the states allow their credit unions to accept public deposits. Even where authorized, credit unions average less than 5% of the marketshare for public deposits, but they are an important option for public entities, often providing a better return to taxpayers.
Bills to address to the public deposits issue have been introduced in both chambers – Senate Bill 583 and House Bill 871.
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