Following the latest acquisition of a tax-paying community bank by a multi-billion-dollar tax-exempt credit union, ICBA called for policymakers to end the federal tax exemption for credit unions with $1 billion or more in assets.
Details: In a national news release, ICBA President and CEO Rebeca Romero Rainey said the data on credit union acquisitions of community banks clearly shows these deals harm small businesses and reduce lending capacity in local communities.
Recent Advocacy: ICBA last month reiterated its call for Congress to end the federal tax exemption for credit unions over $1 billion in assets.
Public Support: ICBA polling of U.S. adults consistently shows that Americans support reforming credit union policies. According to ICBA’s latest polling, 59% agree that credit unions should be required to follow stricter regulations to justify their tax exemption, agreeing by more than a 3-1 margin.
Resources for Community Bankers: ICBA’s The Illusionists campaign features a video, frequently asked questions, and additional information on how community banks outperform credit unions in meeting the needs of local communities and the policy disparities that demand reform.