Banks Back, Credit Unions Slam 'Community Action' Proposal
American Banker (08/17/00) Vol. 5, No. 17 p.5; Canning, Eileen

Senate Banking Committee Chairman Phil Gramm (R-Texas) and credit unions oppose an idea put forth by the National Credit Union Administration (NCUA) that would require a "community action plan" (CAP) to be included with applications to expand, convert, or charter a community-based credit union to demonstrate how it would serve its community. In a letter to Norman D'Amours, the NCUA's chairman, Sen. Gramm noted that Congress specifically excluded CAP requirements and other Community Reinvestment Act provisions when it passed the Credit Union Membership Access Act of 1998. While the banking industry supports the NCUA's move to require CAPs for credit unions, it pointed out that the administration's plan to give affiliated groups with less than 500 members fast-track approvals, which it gives to groups with 200 members or less, would also violate congressional intent.


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