Search for yourself!
If you'd like to find out more about "financial deserts" in the U.S, here's a great interactive "Dashboard" [link] you should investigate.
✅ Note a couple of things: 1) the map data includes both bank and credit union branches; so for whatever reason, credit unions have not stepped up to serve these "deserts" in the past with local offices; 2) there are three categories of "deserts" - urban (no branch within 2 miles), suburban (no branch within 5 miles), rural (no branch within 10 miles); 3) there are more urban deserts (66%), than suburban deserts (20%), with rural having the least! (14%). The "cure" for fixing a desert is to locate a physical branch in the area.
😎 The Carolinas' Credit Union League in H.187 appears to be committing to the Legislature that North Carolina state-chartered credit unions will "cure" these financial deserts - at least in rural North Carolina.
That appears to mean CCUL is pledging that state-chartered credit unions will open new, additional branches in each of these rural deserts. Remember that the Fed map above includes all existing credit union branches - so new physical branches will need to be added to meet the CCUL commitment.
It also appears reasonable that some sort of regulatory reporting by credit unions would be required to verify that progress is being made in solving the financial desert problem in North Carolina.
All banks have - since 1977! - been required to report annually on their service to disadvantaged communities - and to submit to regulatory exams to validate their impact. The reporting and exam falls under what's called the Community Reinvestment Act ("CRA").
✅ CCUL and state-chartered credit unions should see this "CRA-type" requirement coming and prepare. The banking industry has long said if credit unions want to be like banks with open membership and commercial lending, then the same rules should apply
With H.187, "I've got a feeling we're not in Kansas anymore!"
Who said they will cure the financial deserts? Where have they pledged to open branches in all these locations? The bill isn't a contract and there is no formal commitment. Because regs allow state employees to become members, is SECU required to accept all state employees within their FOM? No. CU's have escaped CRA reporting because they are mission and purpose-based. We shouldn't need to report and prove anything.
ReplyDeletewhat hubris! Mission and purpose driven? prior to the wrecking ball SECU Board(mini Doge) that hired Hayes.
Delete1:23pm "Because regs allow state employees to become members, is SECU required to accept all state employees within their FOM? "
DeleteYes I believe by law and regs SECU must admit every state employee who applies for membership to SECU.
Do you disagree with that?
Have the bylaws been changed again without notice to permit membership denial? Some sort of mew risk/race-based membership ("RBM") rule?
1:23pm "CU's have escaped CRA reporting because they are mission and purpose-based."
DeleteAssume you haven't noticed that an increasing number of folks in NC and nationwide having growing doubts about that?
H.187 just adds fuel to that fire w/o necessity... especially when the response to "financial deserts" is... " Intent maybe, but not an obligation, nor a consequence if no branches go in."
1:23pm The "financial deserts" - which CCUL told our Legislature are a major problem requiring passage of H.187 - exist in rural areas because there is "no bank/credit union office within 10 miles". By that Fed definition the cure is to open an office in each rural desert.
ReplyDeleteDo you disagree with that?
Disagree with the idea there is a commitment to cure this by putting branches in all these places. Intent maybe, but not an obligation, nor a consequence if no branches go in.
Delete2:40pm The refusal to be accountable to anyone - including member-owners - is why some of us believe it's a ruse by CCUL to slither into open membership. "Intent maybe" ???
DeleteAlso reignites the evidence that SECU in particular has no commitment any longer to NC.
Hard to overlook how all this got started in 2021 with a rogue Board and CEO.
And the idea that all this misdirection doesn't have consequences... good luck with that!
Happy to deal with consequences. Didn't you say the bank lobby was all up in arms when we talked about our profit? Did that have a consequence? Only reason banks don't like us is because we won't lend to all their high risk customers anymore. They were happy to give them to us.
ReplyDeleteThe fact that this commenter uses "us" and "we" implies that he or she is associated with a credit union. Scary thought.
DeleteWould agree, but who knows where SECU stands?
DeleteCEO Leigh Brady is afraid to come out in public and discuss issues
Look, that is just wrong. She will answer any and all questions submitted in writing ahead of time. One question. No follow up. No list of questions. Then she will read aloud to you written response. What the heck do you want from your SECU CEO??? To answer questions for 3 hours like Warren Buffet?
Delete"To answer questions for 3 hours like Warren Buffet?"
DeleteYes if need be ...
Buffett does it for his share holders and she should do it for her member/owners ...
unless of course she can't answer the tough questions ...
@7:13am - HAHA. That is all so true!
Delete11:21.. She gave a CEO report and answered many questions that were submitted. She is communicating enough. Read her update letter. You know what your deposit rates are, what else do you need to know?
DeleteDitto!! @10:25
DeleteRe: The desert map and data -
ReplyDelete"We use data from S&P Global Market Intelligence SNL U.S. Bank Branch Data (“S&P SNL branch data”), a comprehensive data set of bank branches. We focus on brick-and-mortar, full-service, retail branches, including those of commercial banks, savings and loan associations, and credit unions (bank branches for
simplification hereafter)."