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| House Bill offers Investment Authority flexibility for Credit Unions |
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A needed modernization to lift limits on investment options for credit unions is newly introduced in the House. The bipartisan Credit Union Investment Authority Act, introduced by Reps. Janelle Bynum (D-OR) and Young Kim (R-CA), updates the Federal Credit Union Act to offer flexibility on diversifying investments, providing federal credit unions parity with banks and other institutions that can already invest in a broader range of options.
“To continue operating safely and soundly while offering affordable financial products to their members, federal credit unions need laws that reflect the modern financial services landscape. Antiquated laws currently limit the investment options for credit unions. America’s Credit Unions thanks Representatives Janelle Bynum and Young Kim for recognizing this disparity and introducing the Credit Union Investment Authority Act,” said America’ s Credit Unions Chief Advocacy Officer Kathleen Coulombe. “Modernizing the Federal Credit Union Act will give credit unions much needed flexibility to diversity their investments, helping them manage their balance sheets, to maintain safety and soundness, and continue providing the most affordable financial services in the country. We will continue to advocate for modernized regulatory practices and hope Congress moves quickly to pass this legislation.”
GoWest Credit Union Association and California’s Credit Unions also shared their appreciation for the legislation.
“Expanding investment opportunities for federally-chartered credit unions will produce lasting financial benefits for millions of members across Oregon and the entire six-state GoWest region,” stated GoWest Credit Union Association. “Because credit union members are also owners, stronger investment options directly support the financial well-being of the institutions they rely on. Allowing the sorts of investment opportunities available to other financial institutions, including state-chartered and corporate credit unions, will strengthen federal credit unions and increase the financial stability of their members and the communities they serve. On behalf of these members, we thank Rep. Bynum for her leadership in advancing this much-needed change to support the financial strength and security of credit union members, in Oregon and across the six-state GoWest region.”
“For generations, federally chartered credit unions have served their members and adapted to meet the needs of their communities. However, as the financial services industry modernized, some regulatory flexibility remained out of reach for credit unions, such as investment authorities. We are grateful to Rep. Kim for developing a bill that will provide a new tool for credit unions to invest funds and generate greater value for members," said Stephanie Cuevas, SVP of Federal Government Affairs for California's Credit Unions.
America’s Credit Unions advocacy efforts for key credit union modernizations are ongoing.
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