Credit unions, as well as the entire financial services industry, should be encouraged by the recent remarks of President-elect Donald Trump relating to government regulations.
Mr. Trump has stated that for every new regulation imposed by a government agency, he wants two taken away. A very bold plan but one that hopefully signals an administration willing to work with credit unions, small banks and businesses in general to be successful, productive and responsive to the people they serve.
Since the financial crisis of 2008, credit unions, along with everyone else engaged in the business of financial services, has been overly burdened by regulations imposed as a result of the Dodd-Frank legislation. For years, leagues, CUNA, NAFCU and individual credit unions have been pleading for relief from the tremendous cost and hours required for compliance with the steady stream of new, and often unneeded, government regulations. Repeated efforts for change have fallen on deaf ears, especially with the CFPB.
The recent election could signal a new dawn in Washington and many believe the opportunity exists for significant changes in the way the White House and Congress view the role of financial regulators. I personally believe that our credit unions will continue to operate under the stringent standards of being safe and secure. However, they will now be given the opportunity to serve even more citizens and provide even better services without the constraints of unneeded regulations.
Some individuals in Congress would like to return to the principals contained in the Glass-Steagall Act. Congressman Jeb Hensarling (R-Texas), and some of his colleagues, believe the provisions of the Financial CHOICE Act would be a good start in the right direction. Regardless of which road is taken, it could only mean good things for consumers and credit unions.
The start of a new year is always exciting. For credit unions, 2017 could be one of the most exciting years in a long time. With an administration and Congress that has indicated support for business and regulatory reform, the opportunity exists for a new direction. No one would argue that regulations to ensure safety and soundness are needed; however, credit unions should not be burdened by unneeded regulations intended for the largest of financial institutions.
Now, more than ever, we need to be pro-active, involved and engaged at the forefront of making sure everyone in government understands what credit unions do for the communities they serve. They also need to understand that the credit union philosophy of people helping people is demonstrated every day and that they stand ready to do even more.
John J. Bratsakis is president/CEO of the the Maryland and District of Columbia Credit Union Association. He can be reached at 443-325-0774 or [email protected].
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