Mich. bankers fighting credit unions

Northwestern Financial Review, Aug 15-Aug 31, 2003

Charles VanLoan has his work cut out for him as 2003-2004 president of the Michigan Bankers Association. Michigan credit unions are fighting tooth and nail for passage of legislation that would grant them a host of powers. VanLoan plans to fight back.

"We're going to work hard to rally our membership," said VanLoan, president of Independent Bank Corporation, Ionia, Mich. "It's not difficult to get bankers involved when it comes to credit union issues. It's such an unfair issue that people get emotional about it. Hopefully we'll wind up with an acceptable compromise that serves both sides. That's our goal."

The legislation is out of committee and is expected to make its way through both houses of the Michigan legislature by the fall. The bill would allow greater flexibility for credit unions to expand their fields of membership; permit credit unions to serve non-members with basic financial services; enable credit unions to offer members small, short-term loans - up to $1,000 payable within 30 days; and allow a credit union to conduct business by mail or electronically.

VanLoan said he's planning to spend a good deal of time at the capitol. "I'm looking forward to using the opportunities presented by the MBA," he said. "The main thrust of our association has to be the political aspect. We exist to make sure our voice isn't one voice out there alone in the wild."

The MBA is representing an increased number of banks following the consolidation of the Michigan League of Community Banks into the MBA. The consolidation was completed in April, bumping up MBAs membership by 16 to a total of 191 institutions.

MBA's June convention had the highest attendance in years, said VanLoan. "There aren't that many thrifts in the state, but they do bring a lot of people to the convention."

While the consolidation further widens the membership that MBA serves, VanLoan said the MBA has remained inclusive. "We've been able to maintain the memberships of the biggest and smallest banks," he said. "When some of the larger banks only have offices in the state but aren't headquartered here, they often take a hard look at whether they want to spend $75,000 or $100,000 to be a member of the local association. The large banks are choosing to do so in Michigan and I think that's because membership has great value."