WASHINGTON—The annual debate over providing banks with access equal to that of credit unions on military bases is back in earnest, with three CU trade groups sending a letter to Congress in advance of mark-up of the National Defense Authorization Act (NDAA).
The Defense Credit Union Council, NAFCU and CUNA sent a letter to leaders of the House Armed Services Committee emphasizing their opposition to any changes to allowing banks to operate rent-free on military bases. The banking trade groups have been equally vocal in their support of such a provision.
Over the last several sessions of Congress language providing for the equal access has been inserted in the Senate version of the bill, but not the House, before being removed in the final version of the bill.
DoD Report Cited
The letter notes that a Department of Defense (DoD) report found “military personnel and civilians increasingly have the option of obtaining banking services online and/or off-base” and that they are fully able to “engage in a wide range of financial services transactions with any number of financial services providers they choose at almost any time, regardless of where either party may be physically located.”
“We see no need to consume the committee’s time in developing a legislative formula to impose on installation commanders who are busy enough preparing for combat operations,” the joint letter reads. “We are concerned that this effort by ‘for-profit’ banks would amount to Congressional micromanagement of individual base commanders to solve a problem that the DoD has confirmed does not exist. This is why America’s credit unions continue to earn their nominal lease structure by providing safe, sound, and available financial products and services.”
No ’Fear’ of Competition
“…Defense credit unions do not fear competition from banks, especially on base, as there can be an important role for both institutions to play,” the letter continues. “But credit unions simply put our members first—ahead of profit. If banks want to be treated like credit unions, they need to start acting like them. Equal treatment needs to focus on service, structure, and ethos, not increasing the bank’s profit sustainability. Our service members deserve more!”
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