Prepared Testimony of Senator Michael B. Enzi (R-WY)

Hearing on the Implications of the Recent Supreme Court Decision
Concerning Credit Union Membership (Second of Two Hearings).
Thursday, April 2, 1998, 9:30 a.m.

Thank you, Mr. Chairman. I am pleased that we are having a second hearing in order to hear from witnesses of both the banking and credit union associations.

As I stated last week, I want to do what is fair and equitable for all insured depository institutions, and do not want to rush to judgement on a very emotional issue, even though the House passed H. R. 1151 by a wide margin yesterday.

We must consider that the action Congress takes will impact not only credit unions, but small community banks, savings associations and all other insured depository institutions.

I also want to be assured that all safety and soundness concerns are addressed or we will be in danger of not helping the credit unions, but jeopardizing their insurance fund and members in the long run. One of these areas of concern is that of commercial lending by credit unions.

H.R.1151 grants broad powers to the NCUA on everything from establishing CRA-like provisions to defining what a "well-defined local community, neighborhood, or rural district." I believe we should not be in such haste to grant NCUA, or any other regulator for that matter, the ability to set boundaries as important as these for the institutions they regulate.

I look forward to hearing the testimony of the witnesses. Thank you.



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