WASHINGTON—Saying CUs are a critical part of the national financial infrastructure, Senator John Tester (D-MT) told CUNA’s GAC that Congress is continuing to work to reduce CU’s regulatory burden.
Tester, citing the efforts of Congress last year to pass the Economic Growth, Regulatory Relief and Consumer Protection Act, said changes had to be made to reduce the regulatory burden that has been driving many credit unions to merge.
Tester noted that Dodd-Frank Act was aimed at Wall Street, but its effects have been much greater on small FIs.
“We saw you guys paying the price and we knew we had to make changes,” he said. “We wrote a bipartisan regulatory reform bill last year the likes that I have never seen. We were able to level the playing field for credit unions with community banks.”
Rural America
Tester said he has strong ties with small credit unions, especially those that serve rural areas.
“I am from rural America and I know how important credit unions are to their communities,” he said, “Your business model is different, and that is good. You serve towns with branches that make decisions locally, and you provide services by looking members in their eyes and shaking their hands.”
Tester, a member of the Senate Banking Committee, also addressed how the “digital age” has brought many new opportunities to credit unions and other financial institutions, adding though that greater cybercrime has resulted, as well. He said Congress this year is committed to address data security, saying he understands the challenges FIs face.
‘Hard to Combat’
“We know it is hard to combat something that changes as quickly as you develop a new defense,” Tester said. “So, we have to work hard to make sure consumer data is protected—it’s one of our main jobs as we move forward in this Congress.”
Tester said Congress is also focused on addressing the conservatorships of Fannie Mae and Freddie Mac, saying Congress realizes the “backstop” the GSEs provide to a mortgage market that drives the economy.
“I have confidence that the folks on the Senate Banking Committee will work together on this matter,” Tester said.