Monday, March 11, 2019

Bill Would Allow CUs to Accept Public Funds

Legislation (SB257) has been introduced in Arkansas Senate that would allow credit unions insured by the National Credit Union Administration to serve as depositories of public funds.

The Arkansas Bankers Association is opposed to the bill.

In an op-ed appearing in Arkansas Business, Lorrie Trogden, president and CEO of the Arkansas Bankers Association, wrote: "Allowing credit unions to take public deposits would only work against the state by reducing the state’s tax base as well as leaving less capital in community banks for lending to small businesses and consumers."

She further wrote: "If credit unions want to stray from their mission and act like banks, they should be taxed like banks."

Read the op-ed.

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