As the economic slump continues, many Americans are becoming increasingly frustrated and are fighting back against those who are perceived to be perpetuating the problems. One entity currently being targeted is the large banking industry, and a new movement requesting that people remove all money from banks on November 5^th is gaining momentum through social networking.

Art Gallery owner Kristen Christian of Los Angeles started the movement when she became tired of fee increases and not having access to her own money. Christian decided to move her money to a local credit union. Upon doing so, she decided to encourage others to do the same as a show of people taking control of their own finances.

Some economists fear that the movement will cause a “run on banks,” like the one that happened after the stock market crash of 1929, which was part of the cause of the Great Depression. Those involved in the organization of Bank Transfer Day, however, claim that because people are being encouraged to deposit their money in credit unions rather than keeping it at home in a drawer that this will not cause another depression.  They also state that unless there are an unanticipatedly large number of participants, the amount of money being withdrawn will not be enough to seriously affect the large banks.

Credit unions are being selected as the destination for funds withdrawn from banks because they are locally owned and operated.  They generally offer better interest rates, no minimum balances, and are willing to invest in local businesses.

The National Credit Union Association reports that its members have recently gained more accounts since the movement started and that Internet searches for credit unions have also increased. The NCUA has been sending out memos to its members in order to help prepare them for any increased activity that they may see due to the Bank Transfer movement, as well as running marketing campaigns to take advantage of the added publicity.

While Bank Transfer Day has been gaining some recognition, it has been overshadowed by the Occupy Wall Street protest that began on September 17 and has been continuing ever since. The Bank Transfer Day organizers claim no affiliation with the “Occupy” movement and has posted that they“[do] not endorse any activities conducted by Occupy Wall Street” on their Facebook page.

Those interested in what Bank Transfer Day can visit the movement’s Facebook page at www.facebook.com/Nov.Fifth. For information about the National Credit Union Association, visit their website at www.asmarterchoice.org. Whether or not large banks take notice of these movements and change their business practices is yet to be seen and will probably not be noticeable for quite some time.

John Robertson