“Competition for deposits of public funds in New Jersey may soon heat up,” according to a Wednesday article on NJ.com that reported New Jersey credit unions are “gearing up” to compete with banks and thrifts in a $15 billion municipal market that includes deposits from 21 counties, 566 municipalities and 611 school districts around the state.
Rules amended to include credit unions in the state law that governs municipal deposit insurance coverage took effect Sept. 4th, the article points out. To prepare for this opportunity, representatives of 26 credit unions gathered last week at the New Jersey Credit Union League to hear from state banking officials on how to become eligible to participate in that market.
"It's long overdue that credit unions can compete, and we could tell there is strong interest from our members," Paul Gentile, president/CEO of the New Jersey Credit Union League, told NJ.com.
The article goes on to say that the League plans to host a follow-up conference in November where credit union officials can hear finance professionals from municipalities discuss the requirements of towns, cities and school districts.
Gentile told NJ.com that he expects that some of the state's credit unions will get certified by the end of the year and begin accepting municipal deposits in 2013.
The article is available in its entirely here.