Capital Advantages - a bank is well capitalized at 5% and has access to the capital market tools for funding growth; credit unions must hold 40% more capital to be well capitalized and are limited to building regulatory capital only by retained earnings
Improves Consumer Awareness relative to your capabilities - FDIC insurance
Removes Political and Public Relations Risk
Enhances Corporate Governance - holding company opportunities - director compensation allowed - mergers
Product & Market Flexibility - real estate and business lending is encouraged; and regulators are experienced in these areas
Unlimited Field of Membership - borrowers do not have to be members
Eliminates the cost to re-capitalize corporate credit unions
Stops the drain on member capital related to NCUSIF assessments. FDIC now charges 5-9 basis points (pre-tax) for deposit insurance versus NCUA's guidance to budget 25 to 35 basis points for the same coverage. Moreover, some observers claim NCUA lacks transparency and is practicing regulatory forbearance to keep the credit union industry afloat.