A recent study by Moebs $ervices found that banks have more consumer friendly overdraft (OD) features than credit unions.
The study looked at the De Minimis and Daily Cap features of 3,800 credit unions and banks.
De Minimis means that when a transaction causes an account to become overdrawn with a very minimal negative balance, the account will not be charged an overdraft fee.
A Daily Overdraft Cap limits the number of overdraft fees that will be charged in one day.
Moebs $ervices found that 33.8 percent banks had De Minimis features versus 12.9 percent of credit unions.
In addition, Moebs $ervices found that 29.2 percent of banks had Daily Caps on the number of overdraft fees. However, only 7.4 percent of credit unions used Daily Caps.
Wednesday, August 31, 2016
Tuesday, August 30, 2016
FinCen Proposes AML, CIP Rules be Extended to Non-federally Insured CUs
The Financial Crimes Enforcement Network (FinCEN) issued a proposed rule imposing -- for the first time -- anti-money laundering (AML) program and Customer Identification Program (CIP) requirements for banks without a federal functional regulator, including non-federally insured credit unions.
The proposed rule would prescribe minimum standards for AML programs and include these institutions in CIP, thus “eliminat[ing] the present regulatory ‘gap’ in AML coverage” and “reduc[ing] the opportunity for criminals to seek out and exploit banks with less rigorous AML requirements.”
Covered institutions are already subject to various Bank Secrecy Act recordkeeping and reporting requirements, so FinCEN said the proposal would not be “unduly burdensome.”
Read the proposed rule.
The proposed rule would prescribe minimum standards for AML programs and include these institutions in CIP, thus “eliminat[ing] the present regulatory ‘gap’ in AML coverage” and “reduc[ing] the opportunity for criminals to seek out and exploit banks with less rigorous AML requirements.”
Covered institutions are already subject to various Bank Secrecy Act recordkeeping and reporting requirements, so FinCEN said the proposal would not be “unduly burdensome.”
Read the proposed rule.
Monday, August 29, 2016
Royal CU Completes Acquisition of Capital Bank
The $1.8 billion Royal Credit Union (Eau Claire, WI) completed its acquisition of Capital Bank in Saint Paul (MN).
The transition of Capital Bank’s branch took place over the weekend. On August 29, Capital Bank customers became members of Royal CU.
Royal CU assumed approximately $35 million in assets of the former bank.
Read the story.
The transition of Capital Bank’s branch took place over the weekend. On August 29, Capital Bank customers became members of Royal CU.
Royal CU assumed approximately $35 million in assets of the former bank.
Read the story.
CU Buys Naming Rights to Aloha Stadium Field
Hawaiian Tel Federal Credit Union (Honolulu, HI) bought the naming rights to the field of Aloha Stadium.
The credit union will pay $275,000 per year as part of the agreement. The deal is for three years.
The field will be officially called the Hawaiian Tel Federal Credit Union Field at Aloha Stadium.
Read the story.
The credit union will pay $275,000 per year as part of the agreement. The deal is for three years.
The field will be officially called the Hawaiian Tel Federal Credit Union Field at Aloha Stadium.
Read the story.
Saturday, August 27, 2016
TV Commercial -- Great Rates for Everyone, No Military Service Required
Pentagon Federal Credit Union (Alexandria, VA) is airing a commercial on CNBC, which makes it clear that the credit union was open to the public.
The commercial has the tagline "Great Rates for Everyone" and ends with "No Military Service Required."
If anyone can do business with Pentagon Federal Credit Union, then why should the credit union retain its tax exemption.
See the commercial.
The commercial has the tagline "Great Rates for Everyone" and ends with "No Military Service Required."
If anyone can do business with Pentagon Federal Credit Union, then why should the credit union retain its tax exemption.
See the commercial.
Friday, August 26, 2016
Another Alabama CU to Acquire a Bank
Family Security Credit Union (Decatur, AL) has agreed to purchase the Bank of Pine Hill, located in Pine Hill, Ala.
The $580-million credit union will substantially purchase all of the assets and assume the deposits of the one-office, $25-million bank.
State and federal bank and CU regulators still need to approve the deal, which is expected to close in the first quarter of 2017.
The $580-million credit union will substantially purchase all of the assets and assume the deposits of the one-office, $25-million bank.
State and federal bank and CU regulators still need to approve the deal, which is expected to close in the first quarter of 2017.
Clinton Campaign Proposes Reg Relief for Community Banks and CUs
Hillary Clinton's campaign released a list of proposals to reduce the regulatory burden on community banks and credit unions.
Her proposal would exempt community banks and credit unions from regulatory creep. The proposal notes that many regulations, which are intended for larger institutions, end up being applied to community banks and credit unions. Her proposal would ensure that credit unions and community banks are only subject to rules that makes sense for their size and mission.
She proposes to eliminate duplicative examinations for community banks and credit unions. This would include better coordination of examinations between state and federal regulators. Also, she supports greater examination schedule flexibility for healthy credit unions.
Her proposal would expand the safe harbor protections for mortgages made by community banks and credit unions with less than $10 billion in assets, as long as the mortgages have appropriate documentation, do not have excessive fees or interest rates, and are held on the books of community banks and credit unions.
The proposal would streamline the reporting requirement for banks with under $1 billion in assets. I suspect this would be extended to smaller credit unions.
Furthermore, she will designate senior officials at the Department of Treasury to work closely with community banks and credit unions to ensure that economic policy and financial regulations are helping them to succeed and grow.
Read her proposal.
Her proposal would exempt community banks and credit unions from regulatory creep. The proposal notes that many regulations, which are intended for larger institutions, end up being applied to community banks and credit unions. Her proposal would ensure that credit unions and community banks are only subject to rules that makes sense for their size and mission.
She proposes to eliminate duplicative examinations for community banks and credit unions. This would include better coordination of examinations between state and federal regulators. Also, she supports greater examination schedule flexibility for healthy credit unions.
Her proposal would expand the safe harbor protections for mortgages made by community banks and credit unions with less than $10 billion in assets, as long as the mortgages have appropriate documentation, do not have excessive fees or interest rates, and are held on the books of community banks and credit unions.
The proposal would streamline the reporting requirement for banks with under $1 billion in assets. I suspect this would be extended to smaller credit unions.
Furthermore, she will designate senior officials at the Department of Treasury to work closely with community banks and credit unions to ensure that economic policy and financial regulations are helping them to succeed and grow.
Read her proposal.
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