Trade Group: More Banks Will Leave Military Bases as a Result of Defense Bill
Banks have come up short in their effort to get rent-free access to military bases.
Banks will continue to leave military bases as a result of a provision in the recent defense authorization bill that credit unions hailed as a major victory, Steven Lepper, president of the Association of Military Banks of America, recently said.
President Trump last week signed the annual defense authorization bill. The Senate version of the bill included a provision that would have given banks the same free rent benefit on military bases that credit unions now receive.
The House bill did not include that provision; nor did the conference report for the legislation.
“In a time when Congress is focused on protecting our troops from predatory financial entities,” Lepper said, “it makes no sense that we continue to push our troops into their arms.”
Association officials said that banks have been leaving military bases, and with rent increasing, even more will do so.
They said that credit unions have blocked their annual attempt to obtain those recent benefits.
Anthony Hernandez, president/CEO of the Defense Credit Union Council, which fought against the bank provision, said that adding the bank provision would have simply increased banks shareholder profit margins.
“Essentially, the bank lobby tried to pull a fast one, and portray themselves as something they are not,” he said. “Credit unions called them on it, and once Congress learned the facts, they made the right decision.”