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CU Execs: Most Oppose Raising MBL Cap; Large Loans Are ‘Bank Biz'

Posted on 5/10/2012

Most credit unions don't want to double their business-lending cap, and they shouldn't compete with banks for large business loans, according to two credit union executives, who were quoted in separate question-and-answer-formatted e-mail messages that ABA sent yesterday to all senators.

"Doubling [member business lending] limits for natural person credit unions is not something a majority of credit unions want or need. Yet, if a minority of powerful credit unions and industry trade associations get their way ... [member business lending] could easily become the next industry crisis … ," Dale Kerslake, president and CEO of Cascade Federal Credit Union, Kent, Wash., told the Credit Union Times.

"[Credit unions] shouldn't be doing strip centers, corporate buildings and land development. That's not who we are. That's the banks' business," Ron Burniske, president and CEO of Chartway Federal Credit Union, Virginia Beach, Va., said to Inside Business magazine after his institution took over a failed credit union.

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