Financial Impact of Regulation on Oregon, Washington Credit Unions: $306 Million

Economists from Cornerstone Advisors, Inc. performed the analysis for the CUNA-sponsored report. They took a microscopic look at regulatory compliance practices at credit unions in the small, medium, and large asset categories, and reviewed financial data from 53 additional credit unions. 

Breakdown of Northwest Costs

Based on the findings, a conservative estimate of the financial impact on Washington’s credit unions was $206.1 million—comprised of a $164.5 million cost impact and a $41.6 million lost revenue impact. The average cost per Washington credit union: $2 million. Significantly, CUNA reports, the cost per membership averaged $65 that year.

Oregon credit unions carried a $99.9 million cost burden according the study—$82.3 million in direct cost and $17.6 million in lost revenue. The average cost per Oregon credit union, CUNA reported, was 1.56 million, and $65 for each membership.

The national cost of regulation was reported at $7.2 billion. Cornerstone Advisors, Inc. measured financial impact in costs such as staff, technology, and third party support expenses incurred because of regulations. Revenue was also a factor the study weighed, including lost loan participation and lower non-interest income. The cost estimates are conservative, CUNA says, because Cornerstone instructed credit unions to include only costs and reduced revenues they could reasonably quantify.

Questions about this story? Contact Lynn Heider: 503.350.2225,

Posted in CUNA.