TOPEKA, Kan. – This state's credit unions are urging the legislature to reject a plan that calls for merging the Department of CUs with the bank and securities regulators.
The plan was proposed in a report by the state’s Legislative Post Audit Committee, which projects savings from combining the three fee-funded agencies of $260,000 in salaries, benefits, and operating costs.
The audit found that there was an estimated $295,000 in other operational efficiencies that the agencies could put into place independently, such as bank examiners working from their homes.
The credit union department regulates approximately 85 state charters.
"Kansas credit unions want and need a regulator that understands the unique regulatory challenges faced by not-for-profit financial institutions,” said Marla Marsh, president of the Kansas CU Association. “This report fails to recognize the philosophical and structural differences between credit unions and banks. Combining agencies and homogenizing the regulatory process could result in the loss of the fundamental differences between the two regulatory organizations.
If any action is taken on the report it will occur during the 2009 legislative session.
