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House approves bill expanding state-chartered credit unions' powers amid bankers' objections
Summary
House passed House Bill 187 to modernize state-chartered credit unions — allowing membership expansion, fintech partnerships and additional lending — after floor debate about rural banking access and taxation differences; final passage was recorded 101-11.
The North Carolina House passed the committee substitute to House Bill 187 on third reading by a recorded vote of 101 to 11. The bill was presented as an update to enable state-chartered credit unions to better serve areas with limited banking access and to modernize statutory language for current financial practices.
Representative Howard, the sponsor on the floor, said the measure is “narrowly tailored to allow credit unions to serve people who live in areas without nearby bank branches” and would permit state-chartered credit unions to accept members with incomes below the federal poverty line, partner with fintech firms, make certain investments, and keep records electronically.
Opponents, including Representative Butler, cited the Bankers Association’s concerns that the bill does not require brick-and-mortar investment in rural “banking deserts” and noted potential competitive issues because credit unions do not pay the same taxes as banks. Butler said, “This bill does not require credit unions to make brick and mortar investments in these rural areas,” and warned the measure could expand credit unions’ services without equivalent regulation or tax obligations.
Several members spoke in support, including Representatives Cunningham and others who raised examples of credit unions’ role in serving members with lower incomes and in rural communities. Representative Lou said credit unions reinvest profits back to members and cited individual examples of members receiving more favorable rates.
The clerk recorded the final passage on third reading; House Bill 187 will be ordered sent to the Senate.
