KENSINGTON, Md. — As the $332 million Lafayette Federal Credit Union moves toward the Dec. 16 special meeting that will end the balloting on whether or not it will remain a credit union, there are indications that the institution might find it especially hard going as a bank.

The primary challenges the credit union-turned-bank will face may be its size and a diminished presence in its market place as it simultaneously stops being a credit union with a majority of federal employee members and instead becomes just another bank in Washington, D.C. making a bid for a very sophisticated and highly-prized customer base.

"Washington is considered a very competitive banking market primarily because of the number of relatively affluent people who live here who are smart and who often have jobs which are relatively recession proof," explained David John, a noted banking analyst for The Heritage Foundation, a conservative think tank.