Washington CUs Win Tug-Of-War Over Municipal Deposits
US Banker | March, 2010
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FeedbackOLYMPIA, Wash. — The state's credit unions won a major fight with passage of a bill that will give them access to billions of dollars in municipal deposits.
Starting July 1, 2011, the state's 70 credit unions will be added to the list of financial institutions that can hold public deposits — money from city and town governments, school districts and other public entities. Credit unions will be allowed to accept up to $100,000 from each public entity.
Previously, only banks had access to the almost $6 billion deposited in 80 institutions.
The legislation, signed into law Friday by Gov. Chris Gregoire, was opposed by the Washington Bankers Association. Jim Pishue, president of the state lobby group, said banks wouldn't mind credit unions holding public deposits, as long as credit unions were required to pay the same amount of state taxes.
"State leaders need more options for public funds in top-tier financial institutions," said John Annaloro, president of the Washington Credit Union League, which lobbied for the bill. "This is a smart change."
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