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ICBA, Groups Urge Military-Banking Parity

ICBA and other financial trade groups called on members of Congress to finalize a pending defense bill with language promoting parity between banks and credit unions on military bases.

In a joint letter to Senate and House Armed Services committee leaders, the groups advocated language in the Senate-passed S. 1790 that would require the Defense Department to treat on-base banks and credit unions equally when assessing rent and related charges. While the House version does not include similar language, a conference committee of lawmakers will determine whether it is included in the final version.

Banks on military bases are currently required to pay rent for the use of facilities, though credit unions may operate rent-free. Under the Senate version of the 2020 National Defense Authorization Act, if the Defense Department waives or charges rent for credit unions, it would be required to do the same for banks.

Meanwhile, community bankers can continue using ICBA’s Be Heard grassroots action center to urge Congress to investigate the trend of large credit unions buying up community banks.

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