WASHINGTON—Federal Reserve Board Gov. Lael Brainard learned more about the issues facing credit unions and the valuable role they play in the nation’s economy during a meeting Tuesday at Fed headquarters with the NAFCU board.
At the meeting, the board discussed the findings of the 2016 NAFCU Report on Credit Unions and other issues affecting the credit union industry. The 2016 NAFCU Report on Credit Unions is available here.
“Our 2016 NAFCU Report on Credit Unions shows that despite the challenging legislative and regulatory climate, credit unions serve a vital role in serving approximately 105 million members and the nation’s economy, and are well-positioned for the future,” said NAFCU
President and CEO Dan Berger. “This is the 24th year that NAFCU met with the Federal Reserve, and we welcomed the opportunity to discuss current issues that are significant to credit unions and the financial services industry.”
During the meeting, NAFCU Board Chairman Richard L. Harris, president and CEO of Caltech Employees Federal Credit Union in La Canada, Calif., talked to Brainard about the regulatory compliance challenges facing credit unions as well as the high costs associated with retailer data breaches.
NAFCU Board Vice Chair Jeanne Kucey, president and CEO of JetStream Federal Credit Union in Miami Lakes, Fla., said credit unions are well capitalized and have a higher share of first-mortgage, vehicle and revolving loans than they did 10 years ago. However, she said the trend of consolidation in the face of high compliance costs continues.
NAFCU Board Member Jan Roche, president and CEO of State Department Federal Credit Union in Alexandria, Va., talked about credit unions’ use of Federal Reserve services; she said 83% of survey respondents use the Fed’s services. NAFCU Board Treasurer Debra Schwartz, president and CEO of Mission Federal Credit Union in San Diego, Calif., emphasized the importance of the credit union tax exemption during a discussion of NAFCU’s legislative goals. NAFCU Board Member Daniel Weickenand, CEO of Orion Federal Credit Union in Memphis, Tenn., talked about NAFCU’s regulatory concerns, including the low cap on interchange fees.
The 2016 NAFCU Report on Credit Unions looks at five key areas: credit union trends, credit unions’ service to their members and use of Federal Reserve services, legislative and regulatory issues facing credit unions, and emerging challenges and the future for the industry.