Matz to Kentucky League:
Field of Membership Rule Will Help Credit Unions Do What They Do Best

May 13, 2003, Crystal City, VA. -- Board Member Debbie Matz addressed a dinner meeting of the Kentucky Credit Union League here this evening. The League is in town to Hike the Hill. Ms. Matz discussed the new field of membership rule which will take effect on May 15th. “This rule”, she stated, “is vitally important to the future of credit unions.” “Credit unions need to remain competitive and these changes will permit them to provide improved services to more people”. Matz told the Kentucky officials that “under the new field of membership rule, the size of a community is no longer our primary focus. Our attention shifts to the real issue – how the credit union serves everyone in its field of membership.”

She gave the League some advice about hiking the Hill. “Let Members of Congress know that the new field of membership rule will help credit unions do what they do best – provide affordable financial services which is especially useful to people who rely on pawn shops, payday lenders and title companies for loans and check cashing.” “Larger fields of membership”, she continued, “will permit more people to join a credit union and that is a really good thing. This rule will permit credit unions to make their services available to some of the 56 million people who do not have accounts at insured financial institutions.”

Matz told the credit union officials not to assume that Members of Congress really understood the difference between credit unions and banks and even if they did, to keep reminding them. “Remind your congressional delegation that credit unions, regardless of size, do things that banks simply do not do.” “Beyond offering a wide range of financial services at reasonable rates, credit unions make small loans as an alternative to predatory lenders, provide risk-based loans so even people with low incomes or poor credit may qualify and deliver world-class financial literacy programs.” “Above all else,” Matz advised the officials, “brag about your accomplishments and your contributions to the community.”

The National Credit Union Administration, governed by a three-member board appointed by the President and confirmed by the Senate, is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 80 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.