Capital Briefs: Top Issue for Most Banks? Credit Unions

Small and midsize American Bankers Association members generally want the same thing from Congress: a level playing field with credit unions.

Dividing the industry into three asset sizes, ABA asked 600 banks what the biggest issues will be on Capitol Hill next year.

Nearly 90% of community banks - those with assets under $100 million - and 85% of midsize institutions - those with $100 million to $999 million of assets - mentioned the credit union issue as their top concern for 1997. Majorities of institutions in these categories ranked paring bank regulations second.

Nearly 67% of ABA members with at least $1 billion of assets said regulatory relief was their No. 1 priority. Big banks said expanding products and services was their second priority, and competitive equality with credit unions ranked third.

Small and midsize banks were split on their third choice. Community bank members picked unfair competition from the Farm Credit Administration; midsize banks cited the ability to expand their product and service offerings.

Down the road, ABA members agreed that technology would emerge as a key issue.

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