The Department of Defense (DoD) recently issued a report detailing how financial institutions are serving military installations and examines the DoD’s policies to ensure access to financial services for the military community.
The report, entitled Access to Financial Institutions on Military Installations, was requested in the House report accompanying the FY 2022 National Defense Authorization Act (NDAA) passed late last year. It was precipitated by banker claims that military banks are leaving bases due to increased lease costs, and that is hurting access to financial services for those in the military.
However, the DoD report underscored the consistent availability of financial institutions, including banks and credit unions, on military installations.
It said that “military personnel and civilians increasingly have the option of obtaining banking services online and/or off-base” and that they are fully able to “engage in a wide range of financial services transactions with any number of financial services providers they choose at almost any time, regardless of where either party may be physically located.”
The National Association of Federally-Insured Credit Unions (NAFCU) has long supported the protection of credit union nominal leases on military installations and the opposition to efforts to allow all banks to operate rent-free on military bases. Banks have argued for “parity” on this issue, but NAFCU officials say they have failed to recognize the difference between not-for-profit defense credit unions and for-profit banks. NAFCU will remain engaged with Congress as the Senate takes up its version of the NDAA in September, following the passage by the House.
In addition, the Credit Union National Association (CUNA) applauded a new report, saying it undercuts for-profit banks’ rationale for seeking rent-free access on military bases.
“It’s time to put to rest the notion that Wall Street banks offer the same support to our military members as do credit unions,” CUNA President Jim Nussle said. “Our bottom line lies in enhancing the financial well-being for all we serve. That means higher rates, lower fees, and the flexibility to design services and solutions to meet the unique needs of our service members.”
The report said that the DoD has not received any comments from military installation commanders or others that service members do not have adequate access to financial institutions. Further, it said that there are no DoD installations lacking adequate access through on-installation and off-installation means.