CU-bank feud likely to be renewed as Congress considers defense bills

Committees in both the House and Senate are scheduled to mark up their annual defense authorization bills in the next two weeks—annual events that inevitably cause a flare up of the battle between banks and credit unions over rent benefits on military bases.

The House Armed Services Committee’s subcommittees are scheduled to mark up their bills next week, while the Senate Armed Services Committee will begin its own markups the following week.

The markups will take place at the same time a study on rent benefits for financial institutions is being conducted by the Pentagon. Little is known about that study or when it will be released.

Financial Regulations on Military Bases

Under current law, credit unions, but not banks, may have rent-free branches on military bases, a benefit banks have long argued they too should have. Credit union trade groups have fired back that they are non-profit, member-owned institutions and as such they alone should be given that status.

 

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