WASHINGTON—The House Armed Services Committee has directed the Department of Defense to conduct a study on financial institutions on military bases.
Non-binding report language submitted by Rep. Stephanie Bice (R-OK) directs the Secretary of Defense to submit a report to the Committee of Armed Services of the Senate and House of Representatives, not later than July 1, 2022 on the following:
- The availability of financial services institutions on military installations
- The degree to which servicemembers and other personnel that live or work on military installations have the ability to choose between different financial services providers, including banks and credit unions on military installations
- Federal policies and regulations impacting access for financial services providers that seek to offer their services on military installations
- A description of how the Department calculates the in-kind value of services provided by financial institutions on military installations, and whether the in-kind value calculated for these services can be used to partially or fully satisfy the fair market value requirement for leasing non-excess property on military installations pursuant to section 2667 of title 10, United States Code.
Some Concerns
The Defense Credit Union Council (DCUC) told CUToday.info it does not oppose the study, but does have some concerns.
“In fact, we were successful in removing some of the language as it was being drafted,” said DCUC President and CEO Anthony Hernandez. “However, we remain concerned about banker narratives that could influence the report. These concerns were communicated to the HASC ahead of the vote.”
Hernandez said DCUC has always maintained that no military member is deprived of access to financial services when banks choose to leave a military installation.
“There is a defense credit union on each base and plenty of mobile banking alternatives,” he stated. “DCUC has always maintained that the banks can and should use the regulatory process for obtaining in-kind consideration pursuant to section 2667 in Title 10. This is a negotiation between the bank and the installation. The fact that banks are unwilling to open negotiations is very telling.”