In a letter to House and Senate Armed Services Committee leaders today, the American Bankers Association, the Association of Military Banks of America and the Independent Community Bankers of America called for the equal treatment of banks and credit unions operating on military bases. Specifically, the groups urged lawmakers to support Section 2885 of the 2021 National Defense Authorization Act, which would direct the Department of Defense to use its discretion to ensure parity between banks and credit unions, which are currently permitted to operate rent-free on military installations.
“Under these circumstances, banks can’t compete,” the groups noted, adding that the majority of on-base banks are community institutions that often cannot afford to operate at a loss. “If this disparate treatment persists and additional military banks are forced to close their doors, military communities will continue to be disadvantaged as they will lose access to trusted, anti-predatory financial services and the government will lose the free financial services and community support banks have long provided.”