House Passes Measure to Conduct Fee Study

WASHINGTON – Legislation which would include credit unions in the Fed's annual fee study has passed the House of Representatives again this year, as it has for the past three years, but it still faces an uncertain fate in the Senate. The bill, H.R. 1224, the Business Checking Freedom Act of 2005, among other things, included credit unions also allows the Fed to pay interest on so-called sterile reserves. This is legislation which CUNA and NAFCU back and which has often died in the Senate by being folded into broader regulatory reform legislation which then failed to prevail. CUNA CEO Dan Mica both praised the House for its passage and challenged the Senate to take up the legislation. "House passage of this important measure will benefit consumers and credit unions on several fronts," Mica said. "Including credit unions in the Federal Reserve Board's annual retail bank survey will make it easier for consumers to comparison shop when looking for financial services providers and enhance competition and choice in the marketplace. Requiring the Fed to pay interest on sterile reserves will bring fairness to the reserve requirement process and lessen the regulatory burdens for credit unions dealing with the Fed. We urge the Senate to move expeditiously to pass these provisions either in separate legislation or as part of a more broad-based regulatory relief package."