Congress, during the HR-1151 debates, recognized that significant restrictions were being placed on credit union growth by the bill; so a streamlined escape route was crafted for those institutions seeking to shed credit union restrictions. Critics, however, recognizing the legislation "opened the barn door" want to make the process more difficult. Should credit union legislation be introduced, in the "spirit of compromise", critics (such as the credit union trade associations) are likely to attach anti-conversion amendments to stop conversions, thus preserving their turf.

Since HR-1151 streamlined the process of converting to a bank charter, members have overwhelmingly supported the move, regulatory approvals have been swift, and the pioneering institutions have prospered. The voting process is simpler than converting to private insurance since only a simple majority of members voting need to approve of the move; and the NCUA board's approval is not required.

Advice from Stephen R Covey's book: "First Things First" may apply for some facing the bank conversion decision: (1.) "Let go of paradigms that are popular and pleasing, but based on illusion". (2.) "Let go of extrinsic sources of security".

For more information about the mutual bank charter, the stock bank charter, raising regulatory capital, bank holding companies, and other progressive growth strategies contact the author, This email address is being protected from spambots. You need JavaScript enabled to view it., President, CU Financial Services, at 800-649-2741.