Statement on State of the State Address by Credit Union Association of New York Pres./CEO William J. Mellin

ALBANY, NY (01/05/2011)(readMedia)-- Credit Union Association of New York President/CEO William J. Mellin commends Governor Cuomo on his goal of creating efficiency and streamlining state government. As part of this goal, the Governor is looking to consolidate the Banking and Insurance departments and the Consumer Protection Board. As currently structured, the three groups regulate some of the world's largest financial institutions.

While the proposed consolidation poses potential challenges, the Association believes that if executed properly, it would streamline the State's oversight of the financial services industry. It could also create a structure that is more responsive-not only to consumers' needs, but to the legitimate concerns of all financial service providers, irrespective of size or statutory authority.

Creating this new department should not be undertaken as consolidation for its own sake, however. The State needs to seize this opportunity to ensure that financial oversight not only becomes more cost effective, but also fosters greater accountability.

New York's credit unions feel it's essential to maintain credit union representation on the governing body of this new department. Just as vital is that any consolidated department includes an office specifically dedicated to credit unions to preserve the unique and vital role they play in communities throughout New York State. Such an office would guarantee appropriate expertise and a clear line of communication for credit unions at the highest level of the new governing structure.

As not-for-profit financial cooperatives, credit unions have traditionally found ways to provide financial opportunity for those who stood little chance of gaining credit elsewhere. Credit union mortgages, car loans and credit cards provide cost-effective alternatives to millions of New Yorkers. Additionally, the money members invest in their credit unions is reinvested in New York State.

While there are no quick fixes to address our state's budget challenges, we believe Governor Cuomo's proposal, which could create greater efficiencies and a stronger regulatory body, is a step in the right direction. We look forward to working with Governor Cuomo and his administration to bring his concept of consolidation to fruition.

The Credit Union Association of New York has served as the trade association for the state's credit unions for 93 years. New York credit unions have assets of more than $50 billion and serve 4.4 million members. To learn more about the Association, visit www.cuany.org.

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