SEATAC, Wash.—The Northwest CU Association has taken a stand in opposition to any credit union retaining a name that suggests it remains a CU after it converts to any other kind of charter.
The association announced its position after CUToday.info was first to report the $18.6-billion Boeing Employees Credit Union, better known as BECU, in Tukwila, Wash., has asked the state regulator to approve language that would allow it to keep the BECU name should it convert to a cooperative savings bank charter.
Troy Stang, president of the Northwest Credit Union Association, told CUToday.info the NWCUA believes that "only financial institutions which operate solely under the cooperative principals and under the credit union charter should be able to call themselves a credit union or imply as such.”
As CUToday.info reported, Linda Jekel, director of credit unions at the Washington State Department of Financial Institutions, confirmed to CUToday.info that BECU has asked for language to be added to the state’s banking laws that would allow it to continue operating as BECU–an abbreviation for its official name, Boeing Employees Credit Union–even if it no longer is a credit union and instead a bank.
“BECU is on a task force for the Bank Modernization Act project here in Washington,” Jekel said in the previous CUToday.info report. “One thing BECU would like to see, under the mutual bank charter, is an option to have a cooperative bank charter. And they asked that if they decide to do a cooperative bank charter could they keep their name.”
The NWCUA’s Stang added, “As the trade association representing Northwest credit unions, our priority remains being the champion for the not-for-profit, cooperative credit union financial services model—a model that is built on the seven cooperative principles. We are monitoring the Washington State DFI’s consideration of a cooperative bank charter and will work with our member credit unions to understand more about what is being proposed.”
BECU responded to CUToday.info saying it has no plans to change to a bank charter. See the story here.