OHA explores Just what does it take to start a federal credit union is one question under study at the Office of Hawaiian Affairs.
starting credit union
Its goal is to open up loan funds
to more native HawaiiansBy Pat Omandam
Star-BulletinOHA's Program Management committee at its past three meetings has discussed the formation of a Native Hawaiian Credit Union to help Hawaiians get loans.
Yesterday, the panel walked through the federal steps needed to start a credit union. There is a lot more work needed before the proposal goes up for board approval, but it is an idea worth exploring, said trustee Rowena Akana.
"The goal is really to be able to lend money and extend even the loan program that we have with Hawaiian Homes to people who are not on the homestead," Akana said yesterday.
"That's always been a problem, because only people on the homestead have been able to access OHA money as far as loans."
The committee is expected to vote on some sort of credit union proposal on May 15. Big Island trustee Linda K. Dela Cruz suggested the idea.
Among the many questions trustees must first answer is how the credit union will be chartered. Membership can be based on occupation or association, by community or geographic location.
For OHA, suggested members could include the State Council of Hawaiian Homesteaders Associations, the Native Hawaiian Chamber of Commerce, a religious affiliation or a community populated with those of Hawaiian ancestry.
A charter based on geography is the most likely scenario, Akana said. She added the credit union would be open to others who want to become members even though its primary focus is for Hawaiians. That's because a federal credit union can't limit membership to race, Akana said.
The formation of a Hawaiian banking institution is not a new idea. Currently, the Maui nonprofit group Hawaiian Community Assets Inc. is working on a federal charter for its proposed Bank Aloha, a native community bank located on the Valley Isle.
Organizers are expected to file Bank Aloha's federal charter soon with the Office of the Comptroller of the Currency, the federal agency that regulates national banks.
Their goal is to have a preliminary charter this summer, which will allow organizers to formally raise capital. The bank's focus will be on socially responsible investments.
Office of Hawaiian Affairs
