VACU vs. banking institutions: Bankers protest local credit unionвЂ™s expansion plan
The Virginia Credit Union branch on Glenside Drive near western wide Street. (Michael Schwartz)
RichmondвЂ™s biggest credit union is seeking to get larger and contains drawn the ire of bankers from around their state.
Virginia Credit Union, a $3.7 billion organization situated in North Chesterfield, sparked a regulatory battle in current days because it seeks to grow its industry of account to help you to provide solutions to your 10,000-member health Society of Virginia.
Friends led by the Virginia Bankers Association and many tiny banking institutions from around the commonwealth have actually pressed right right straight back against VACUвЂ™s application, claiming the scale and reach that is statewide of make the demand beyond the range of federal credit union laws.
Even though the matter has become on hold as both edges argue their instance, the episode has cast a new light for a long-running dispute between banking institutions and credit unions that started within the 1990s. ThatвЂ™s when federal legislation ended up being changed allowing credit unions, that are not-for-profit and exempt from having to pay particular fees, to more effortlessly expand their industries of account. 2 decades later on, bankers state a lot of of the nonprofit counterparts are getting to be too big and вЂњbank-like,вЂќ without the need to spend the exact same amount of fees.
The scenario will undoubtedly be heard during the State Corporation Commission building downtown. (BizSense file picture)
The problem is typically debated at a nationwide degree among different bank and credit union trade associations, but has remained powerful in Virginia as a result of the existence right right right here of several big, multibillion-dollar credit unions such as for instance Navy Federal, PenFed FCU, Langley FCU and VACU.