Who Should Oversee Credit Unions - Essay Example

The banking industry does not favor the appeal. They claim that giving credit unions a higher lending cap would result in a smaller market share. On the other hand, the credit unions argue that the banks are not doing enough. This is because of this year’s low small-business lending figure.             I think Congress should approve the request for a higher cap. Small businesses apply for loans to make their enterprise grow. As an example, the article talked about how a barge terminal owner was denied a business loan by a credit union because of the cap but was offered a personal loan instead.

This loan helped him start on the tugboat he needed to boost his company’s income. If the cap was raised, the credit union could have given the operator the total loan amount he needed and could have saved him the time he spent saving up to make the difference. For business people, time can be an important factor in a business move.             Moreover, I believe that enabling credit unions to give higher loans will generate more income for the businesses.

This increase in revenue would result in to increase in taxes. The government will then be able to use these additional taxes to fund programs it deems necessary for the country’s growth. Indeed, in the world of economics, banks should play a major role in generating this aspect of income for the government. However, in my opinion, the progress of small businesses should not be hindered by this if, in the end, it is a society that will benefit.