Get ready to say goodbye to your neighborhood credit union! Slowly, but surely regulations imposed by Dodd-Frank are putting credit unions out of business across America. As a result of the Dodd-Frank regulatory burden, U.S. credit unions have seen skyrocketing compliance costs and loss of revenue that are not only hurting credit unions, but also the American consumers that they serve.
Unfortunately, not all credit unions are created equal. Naturally some credit unions have more assets than others, and as a result are able to spread the costs. In fact credit unions with assets under $100 million face a regulatory burden almost 3 times greater than credit unions with over $1 billion in assets. As a result revenue from these institutions are drastically affected by Dodd-Frank regulations like the Durbin amendment. Estimates show that the total impact of these regulations comes in at $1.1 billion in lost revenue in 2014, and that’s just the conservative estimate.