The House passed a bill last week that would allow privately-insured credit unions to apply for membership in the Federal Home Loan Bank System. H.R. 299, the Capital Access for Small Community Financial Institutions Act of 2015, was introduced by Reps. Joyce Beatty, D-OH, and Steve Stivers, R-OH, in January. Credit unions did not have federal insurance until 1970, and Stivers said that many small institutions decided to remain privately-insured and state regulated. While the number is small compared to the more than 6,000 credit unions in the country, the approximately 130 privately-insured credit unions spread out in nine states don’t meet the FHLB System guidelines. Stivers said that a “legislative oversight” has blocked FHLB membership for this small...