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Credit unions say the provisions of the new law make the federal charter too onerous and burdensome and place them at a competitive disadvantage relative to state-chartered credit unions. Since 1997, more than 130 credit unions have converted from federal to state charters, and more conversion applications are in the pipeline.

The new law, which in our view unfairly legitimized bloated “fields of membership,” did nevertheless set a numerical threshold for membership groups that can be approved, as well as some limits on credit union business lending. Compared to more liberal rules for state credit unions in certain jurisdictions, including California and Texas, credit union executives see the federal rules as too restrictive.

From the bankers’ point of view, there’s delicious irony in the moans coming from the credit union camp. Now they have some idea of how bankers feel about competing against the tax-free credit unions.

But irony is in the eye of the beholder, and Dan Mica of the Credit Union National Association has issued a call to modernize the credit union charter. In fact, CUNA has formed a Credit Union Renaissance Commission to study the matter, and its report is expected sometime in the next year-and-a-half. Not to be outdone by its cross-town rival, the National Association of Federal Credit Unions is thumping the tubs in favor of unlimited field of membership expansion and erasing the current limits on credit union business lending. With stunning audacity, NAFCU is calling for a reverse wildcard statute that would give federal credit unions the same power and authority as state credit unions wherever the state law is more permissive than federal law.

Despite the harrumphing from the credit union lobbies, the federal credit union charter is in no danger. Nor is the dual charter system in peril. There are more than 6,000 federal credit unions with $238 billion in assets and more than 4,000 state credit unions with $174 billion in assets. Charter changes by a mere 130 institutions in three years do not signal any sort of emergency.

When Congress passed the Credit Union Membership Access Act, the legislators made it very clear that they believe there should be limits to credit union expansionism, especially given their tax subsidy. Congress also made it clear that credit unions should focus on serving their credit union customers.

Credit union executives and their trade groups, however, seem to think that credit unionism is an entitlement — a right with no responsibilities attached. As generous as Congress has been to the credit union industry in the past, it’s still not likely to grant that industry entitlement status.

For its part, ABA will challenge any loosening of credit union responsibilities at every opportunity and in every arena.

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