New York League Working To Let NY State CUs Accept Municipal Deposits
LATHAM, N.Y. -- The New York State Credit Union League is supporting a measure that would allow credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.
"There is no reason why a credit union shouldn't be a part of the competition for municipal deposits," stated Councilman David Weprin (D-Queens), author of the legislation. "If commercial banks can thrive as they have for years, why shouldn't a credit union reap the same benefits of this competition."
The resolution--similar to the ones approved by the Albany, Syracuse, and Ithaca Common Councils--calls upon the state legislature to support legislation to enable municipalities to make deposits into credit unions.
"By retaining local money in our respective communities through municipal deposits, credit unions will be adding funds to the lending pool," said Alan Kaufman, CEO, Melrose CU. "In so doing, credit unions will be helping to reduce the cost of funds, making it possible to offer lower loan rates while creating more affordable loan products for our communities."
The resolution will soon be discussed at a public hearing of the City Council Finance Committee, which Weprin chairs, the league reported.